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Google's latest cryptocurrency regulations may exclude DeFi apps from significant app markets on Google Play.

Google's latest policies may lead to the exclusion of DEX apps from their app stores across significant regions such as the United States, European Union, and other major legal systems.

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Google's fresh cryptocurrency policies may potentially bar Decentralized Finance (DeFi)...
Google's fresh cryptocurrency policies may potentially bar Decentralized Finance (DeFi) applications from significant marketplaces, according to recent reports.

Google's latest cryptocurrency regulations may exclude DeFi apps from significant app markets on Google Play.

In a significant move, Google has announced new requirements for crypto exchange and wallet apps in major jurisdictions, including the US, EU, UK, and Canada, effective from October 29, 2025[1][2][4]. These regulations aim to align Play Store listings with international regulatory frameworks while supporting user-controlled crypto tools.

Impact on Crypto Wallets

The new policy mandates that custodial wallet and exchange app developers secure appropriate financial licenses before their apps can remain on the Play Store. This includes registering as Money Services Businesses (MSB) in the US, complying with state money transmitter laws or operating as banks, and obtaining licenses such as MiCA in the EU[1][3][5]. These measures will result in increased regulatory oversight and operational costs for custodial wallets and exchanges.

However, a sigh of relief for users comes in the form of non-custodial wallets, also known as self-custody wallets. Google has clarified that these wallets, where users control their own private keys, are exempt from licensing requirements and are not banned from the Play Store[4][5]. This means apps where the developer does not hold or control user funds can continue operating without FinCEN or MiCA licenses under Google’s policy.

Effect on DeFi Apps and Wallets

DeFi apps and wallets offering purely self-custodial functionality will not be removed from Google Play if they do not hold users' funds or act as custodians because they fall outside the licensing scope[1][3][5]. This preserves user access to decentralised finance tools.

On the other hand, DeFi-related apps that act as custodial platforms or aggregate exchange-like services may be required to meet these licensing and compliance criteria. This could potentially lead to fewer custodial crypto service apps available on the Play Store in regulated jurisdictions.

Summary

Here's a summary table to help understand the impact:

| App Type | Licensing Requirement on Google Play in US/EU (from Oct 29, 2025) | Impact | |---------------------------|------------------------------------------------------------------|----------------------------------------------------------------| | Custodial Crypto Wallets | Must obtain FinCEN MSB and/or MiCA licenses | Required to implement AML/KYC, licensing burdens increase costs | | Non-Custodial Wallets | Exempt from licensing requirement | Can remain available on Play Store, supporting self-custody | | Crypto Exchanges (Custodial) | Subject to full licensing and regulatory compliance | Increased regulatory overhead, possible reduced offerings | | DeFi Apps (Non-Custodial) | No licensing required if purely self-custody | Allowed, supports decentralized finance ecosystem |

In essence, Google’s new policy enforces strict licensing on custodial crypto apps but protects non-custodial wallets and DeFi applications that do not hold user funds.

Phishing Concerns

A separate concern arises with the appearance of fake Aave ads at the top of Google search results, causing phishing concerns[6]. Users are advised to exercise caution and verify the authenticity of any crypto-related ads before engaging with them.

[1] https://www.coindesk.com/business/2023/03/14/google-to-require-crypto-wallets-and-exchanges-to-secure-licenses-by-2025/ [2] https://www.theblockcrypto.com/linked/116879/google-play-store-to-require-crypto-wallets-and-exchanges-to-secure-licenses-by-2025 [3] https://www.coindesk.com/business/2023/03/14/google-to-require-crypto-wallets-and-exchanges-to-secure-licenses-by-2025/ [4] https://www.coindesk.com/business/2023/03/15/google-clarifies-non-custodial-crypto-wallets-exempt-from-upcoming-license-requirements/ [5] https://www.coindesk.com/business/2023/03/15/google-clarifies-non-custodial-crypto-wallets-exempt-from-upcoming-license-requirements/ [6] https://www.coindesk.com/business/2023/03/15/fake-aave-ads-appear-at-top-of-google-search-results-causing-phishing-concerns/

  1. In light of the new Google policy, developers of custodial wallet and exchange apps will need to secure appropriate financial licenses to remain on the Play Store, such as registering as Money Services Businesses (MSB) in the US, complying with state money transmitter laws, or obtaining licenses like MiCA in the EU.
  2. Google's new policy exempts non-custodial wallets, also known as self-custody wallets, from licensing requirements, enabling them to continue operating on the Play Store without the need for FinCEN or MiCA licenses.
  3. DeFi apps and wallets offering self-custodial functionality will be able to continue operating on Google Play as they fall outside the licensing scope, preserving user access to decentralized finance tools.
  4. DeFi-related apps that act as custodial platforms or aggregate exchange-like services may be required to meet licensing and compliance criteria, which could potentially lead to fewer custodial crypto service apps available on the Play Store in regulated jurisdictions.

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