Google Play’s New Rules: A Challenge for Crypto Developers
On August 13, Google Play unveiled new regulations that could dramatically reshape the landscape for cryptocurrency applications. Under these new rules, developers of crypto exchange and wallet apps must acquire banking licenses to remain active on the Google Play Store in several key jurisdictions. These changes could pose a significant hurdle for decentralized finance (DeFi) applications and wallets, which traditionally operate without such licenses.
Stricter Licensing Requirements
The jurisdictions affected by these new requirements include the U.S., the EU, Canada, the U.K., Japan, Hong Kong, South Korea, Israel, South Africa, and the UAE. In these regions, developers must register with a governmental body, either as a crypto service provider or as a recognized banking entity.
In the United States, for instance, developers need to be registered with the Financial Crimes Enforcement Network (FinCEN) as a Money Services Business or as a chartered banking entity. Similarly, in the European Union, compliance will require registration as a virtual asset service provider under the Markets in Crypto-Assets (MiCA) regulations.
DeFi Apps Under Threat
Google Play’s guidelines do not differentiate between centralized and decentralized exchanges. This lack of distinction means DeFi platforms, which typically lack a corporate structure for regulatory registration, may soon face removal from the app store.
Well-known decentralized exchanges (DEXs) like Uniswap and PancakeSwap may find themselves delisted if they cannot secure the necessary licenses. Without these licenses, users would be restricted to accessing these platforms via web browsers. Moreover, DEXs will not be able to claim non-targeting of users in regions like the U.S. and the EU, leading to default delisting.
These regulations also apply to both custodial and non-custodial wallets. Consequently, many open-source wallets could be pushed off the Play Store, complicating the process for regular users to download and use them on their devices.
As the crypto landscape evolves, developers must navigate these regulatory challenges to ensure continued access for their users. For more details, visit crypto.news.
