Google has recently clarified its policy regarding self-custodial wallets on its platform, providing reassurance to the crypto community that these wallets are safe from any potential bans. This update comes after Google faced backlash for its new Play Store policy, which initially caused concern within the crypto space.
In a tweet on August 13, Google confirmed that non-custodial wallets are not subject to the licensing requirements outlined in their Cryptocurrency Exchanges and Software Wallets Policy. This clarification was a relief to many, as it means that self-custodial wallets will not be impacted by the new regulations that Google has implemented for app developers in 15 major jurisdictions, including the U.S., the EU, Canada, and others.
The new rules set by Google will require exchanges and custodial wallets to provide licenses from relevant financial regulators in order to operate in these regions. For example, developers in the EU will need to apply for a MiCA license in at least one member state. While these requirements may pose challenges for centralized exchanges and custodial wallets, the exemption for non-custodial wallets was met with approval from the crypto community.
The tightening of Google Play’s policy with regards to regulation reflects the growing trend of jurisdictions mandating registration for crypto exchanges. This trend applies to both centralized and decentralized exchanges, with regulators often failing to distinguish between the two. The ubiquity of exchanges and crypto wallets in the market means that any broad ban could potentially impact Android device sales.
Some questions have arisen regarding the implications of Google’s new policy for devices like Solana’s Seeker phones, which are based on Android’s open-source software. These phones heavily rely on Google’s services, but Solana has its own dApp Store for crypto-friendly apps, offering users an alternative way to access DeFi applications.
Overall, Google’s clarification on the treatment of self-custodial wallets provides a sense of security for users and developers within the crypto space. As regulations continue to evolve, it is important for companies like Google to adapt their policies to ensure compliance while still fostering innovation in the industry.