Google Play new regulations effective in October! Non-custodial encryption Wallets are confirmed to be unaffected.

Google Play will implement new encryption application regulations starting from October 29, 2025, requiring developers of cryptocurrency wallet applications in over 15 jurisdictions, including the United States and the European Union, to obtain local licenses and comply with "industry standards."

However, Google has officially clarified that Non-Custodial Wallets are not subject to the new regulations, and users and developers do not need to worry about being delisted.

Core Contents of New Rules

According to the Google Play announcement, starting from October 29:

U.S. developers: must register as a Money Services Business (MSB) with the Financial Crimes Enforcement Network (FinCEN) and obtain a money transmission license at the state level, or become a federally/state-chartered banking institution.

EU developers: must register as a cryptocurrency service provider (CASP).

Other regions: Must comply with local encryption service-related laws and industry standards.

This means that cryptocurrency exchanges and custodial software Wallets will be subject to stricter compliance requirements, including anti-money laundering (AML) programs and "know your customer" (KYC) procedures.

Non-custodial Wallets are not affected

(Source: Google)

After the crypto community expressed strong dissatisfaction over the rumors that "Google will block non-custodial wallets," Google responded on X (formerly Twitter): "Non-custodial wallets are not within the scope of the Google Play cryptocurrency exchange and software wallet policy. We are updating the help center to clarify this."

This means that applications like MetaMask and Trust Wallet, where users manage their private keys, will not be affected by the new regulations.

Policy Background and Historical Controversies

The relationship between Google Play and the encryption industry has always been quite controversial:

2018: Delisted encryption currency mining applications.

2020: Removed Bitcoin Blast game and encryption news applications such as Cointelegraph and Coindesk, without providing a clear reason.

2021: In conjunction with the U.S. government, 8 suspected fraudulent encryption applications were blocked.

2023: Allow NFT games to be listed, but prohibit gambling elements and "loot boxes."

The initial announcement of the new regulations caused misunderstanding in the market, leading to the belief that Google would prohibit unregistered non-custodial Wallets, but the official statement has clearly denied this.

Developer and User Impact

Developers: Teams providing custodial Wallet or exchange services in affected areas must complete registration and compliance processes in advance to avoid application removal.

Users: Non-custodial Wallet users are unaffected, but users of custodial wallets may be required to complete KYC verification when the application is updated.

Market Observation: New regulations may prompt more developers to shift towards non-custodial models to reduce compliance costs and retain access to global markets.

Conclusion and Key Observations

Google Play's new regulations indicate that global encryption applications are facing a more stringent regulatory environment, but non-custodial Wallets still retain their characteristics of freedom and openness.

Investors and users should pay attention to:

1. Details of the encryption wallet licensing requirements in each jurisdiction.

2. The compliance progress and service changes of the custodial Wallet.

3. The long-term development trend of non-custodial Wallets in app stores.

Gate will continue to track the dynamics of Google Play policies and changes in the encryption application market, providing readers with the latest regulatory and market analysis.