How Google’s new rules will affect cryptocurrency users and investors

Starting in October 2025, Alphabet (Google) will introduce new rules for crypto wallet applications. Under these rules, developers of crypto wallets will be required to obtain special licenses to be listed in the Google Play Store; otherwise, access will be prohibited.

Experts are already calling this one of the most significant steps in the fight against self-custody.* Previously, in 2024, Alphabet had already introduced a similar ban on crypto service advertising, under which companies needed an MSB license in the US and CASP status (official crypto service provider) in the EU to place their ads.

*Self-custody is a cryptocurrency management model in which the user fully controls their assets without intermediaries (banks, exchanges, or custodial services). The key element of self-custody is private keys. Only the wallet owner stores them and has access. Access to funds is ensured via a seed phrase or private key, not a username and password on a centralized platform. Transactions are signed on the user's side, and third parties cannot block or alter them.

What Google requires from developers and how this affects the market

Google's updated rules will define the requirements that cryptocurrency wallet developers must meet. The news caused a strong reaction in the crypto community, after which Google had to clarify the new restrictions.

According to media reports, the new rules aim to combat fraud and other financial crimes. In addition, under the new policy, applications with mobile mining functionality will be prohibited.

One reason for introducing the new Google Play Store rules was precedents involving crypto applications disguising malicious software. For example, a recently discovered spyware trojan called SparkKitty in the Google Play Store was stealing users' private data.

After a wave of criticism, the tech giant explained that the new rules will not affect personal, i.e., non-custodial wallets, whose keys are controlled exclusively by the users themselves.

In other words, the new Google Play Store rules will only apply to custodial wallets controlled by crypto service providers (such as exchanges and brokers). In such wallets, users have to trust a third party to store their digital assets.

However, lawyers noted that these distinctions were not stated in the text of Google's new provisions. After corresponding requests, Google promised to update the document to clarify this issue.

How will Google's new rules affect users and investors?

If already published custodial wallet applications fail to obtain the appropriate licenses, they may be removed from the Google Play Store — a concern that experts believe crypto investors are concerned about.

In this case, users will be forced either to switch to alternative applications with the necessary licenses or start using non-custodial wallets. It's worth noting that Google had already attempted a large-scale crypto app purge in its store in 2021, but this did not significantly affect the spread of malicious software.

Please note that the developer requirements will only apply in 15 jurisdictions, including the US, EU, UK, and UAE. Some provisions of the new rules include:

• The need for registration and licensing by the US Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) for crypto service operators in the US.
• Obtaining official crypto service provider (CASP) status under the EU's Markets in Crypto-Assets (MiCA) regulation.

In other regions, these restrictions will not be introduced, meaning all crypto wallets will remain available to users as before.

Even if applications, including non-custodial wallets, are blocked in the Google Play Store, users will still be able to install them directly from developers' official websites. However, it should be noted that this will increase the risks of downloading malicious apps.

At the same time, users will always have alternatives in the form of:

• Desktop wallet applications and their web versions;
• Hardware wallets are available for purchase in specialized stores and on marketplaces.

Several experts note that the new rules may force some players to leave the market, which could ultimately lead to a correction in digital asset prices. At the same time, some cryptocurrencies may "flow" into the portfolios of institutional investors.