- Main event exemption of non-custodial wallets from new rules.
- Community relief but concern over potential future restrictions.
- Impacts mainly on custodial wallet developers affected by compliance costs.
Google Play’s new licensing rules, effective from October 29, 2025, affect crypto wallets in the US and EU, but exempt non-custodial wallets causing initial confusion and industry feedback.
Continued scrutiny and community diligence are needed as developers adapt, anticipating potential policy shifts with significant impacts on small teams and crypto startup viability in regulated regions.
Google Play’s new licensing rules
Google Play’s new licensing rules for crypto wallets have sparked debates in the tech and financial sectors. Initially, confusion surrounded the inclusion of non-custodial wallets, leading to market uncertainty and widespread community concern.
Google Play, a division of Alphabet Inc., clarified that non-custodial wallets are not affected by the recent policy changes. The rules primarily apply to custodial wallet providers, aligning with new regulatory standards in the US and EU.
The announcement has led to mixed reactions among developers, particularly those managing self-custodial apps. Concerns linger about the ambiguity in policy wordings, prompting developers to reconsider their strategies for app distribution.
Financial implications include increased compliance costs for startups, particularly in the EU where maintaining licenses under MiCA can cost over €60,000. This could discourage investment in wallet technologies and favor larger firms.
Community feedback reflected skepticism over future policy changes, affecting developer operations. There is apprehension that central platforms may inadvertently stifle innovation by enforcing compliance that favours custodial services.
Industry analysts note potential shifts in investment dynamics, with smaller developers at risk of losing market share to entities capable of absorbing higher licensing costs. This scenario could impact the diversity and accessibility of crypto services.
“Non-custodial wallets are not in scope of Google Play’s Cryptocurrency Exchanges and Software Wallets Policy. We are updating the Help Center to make this clear.” (Google Play Policy Team, X post, August 13, 2025)
