Google Walks Back Potential Ban on Non-Custodial Wallets

Google Play briefly sparked fears of a ban on unregistered non-custodial crypto wallets in several major markets following an article from The Rage highlighting the Play Store language, but later clarified the policy does not apply to self-custody apps.

What’s the Scoop?

• Initial Confusion: A Google Play post last month appeared to suggest that unregistered non-custodial wallets would be blocked in countries like the U.S. and UK starting Oct. 29.
• Company Clarification: Google posted to X that “non-custodial wallets are not in scope” of its Cryptocurrency Exchanges and Software Wallets Policy and said it was updating its Help Center to make that clear.
• Developer Requirements: The original policy update said crypto exchanges and software wallets could only be listed if they met local laws and industry standards. In the U.S., that meant registering with FinCEN as a Money Services Business and obtaining state money transmitter licenses, or being a chartered bank.
• Regional Guidance: Google also issued updated wallet compliance guidelines for the UK and European Union.
• Community Reaction: The initial wording drew sharp criticism from crypto advocates on X, who saw it as a potential restriction on access to self-custody tools.

Bankless Take:

The crypto industry was caught in an uproar after perceiving that crypto wallets would be removed from Google Play. Although the software developer later clarified that its restrictions will not apply to self-custody applications, the scare demonstrates just how easy it can be for centralized entities to limit crypto infrastructure access.