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Google Play Store introduced licensing requirements for cryptocurrency wallet applications crossed 15 jurisdictions, including the US and the EU.
According to a report by the Rage, developers indispensable get regulatory approvals earlier publishing apps connected the platform.
Furthermore, the argumentation requires bundle wallet developers to comply with section fiscal regulations “to guarantee a harmless and compliant ecosystem for users.”
The requirements use to some custodial and non-custodial wallets, creating compliance burdens that galore developers cannot meet.
In the US, developers indispensable registry with FinCEN arsenic a Money Services Business (MSB) and get authorities wealth transmitter licenses, oregon run arsenic federally oregon state-chartered banking entities.
MSB registration requires adherence to strict Anti-Money Laundering, Counter Terrorist Financing, and Know Your Customer frameworks.
Policy exceeds ineligible requirements
The study noted that Google’s requirements widen beyond existent ineligible obligations for non-custodial wallets.
FinCEN’s 2019 guidance connected Convertible Virtual Currencies distinguishes betwixt “hosted” custodial and “unhosted” non-custodial wallets, explicitly stating that non-custodial wallets bash not suffice arsenic wealth transmitters nether existing regulations.
The compliance programs required of MSBs correspond the highest outgo load for fiscal institutions and would efficaciously exclude astir non-custodial wallet developers from the Play Store.
The argumentation forces AML and KYC requirements connected each non-custodial wallets disposable done modular Google devices.
Industry disapproval mounts
Consensys lawyer Bill Hughes highlighted the argumentation inconsistencies connected August 1, noting that Google announced the updated argumentation connected July 10 without intelligibly defining “software wallet” terminology.
Hughes observed that registering arsenic an MSB is “something FinCEN has specifically and intelligibly not required” for non-custodial wallets.
He added:
“They don’t specify the word and bash not admit that registering arsenic an MSB is thing FinCEN has specifically and intelligibly not required.”
He noted Google’s broader connection that cryptocurrency activities “should beryllium conducted done certified services successful regulated jurisdictions,” contempt certification not being legally required.
Hughes characterized the concern arsenic “a spot of a mess” and warned that “the last brag for crypto is present much apt to beryllium the Big Tech platforms that inactive dictate the large crypto app organisation channels.”
Justin Slaughter, vice president of regulatory affairs astatine Paradigm, criticized the argumentation arsenic peculiarly problematic fixed Google’s ongoing antitrust litigation.
He said:
“Surprising determination present by Google, particularly amid their antitrust litigation, to abruptly spot draconian restrictions connected persons making non-custodial wallets disposable connected the App Store.”
Slaughter referenced pending legislature legislation, noting that “pure coding should not necessitate a national license” arsenic outlined successful draught bills addressing cryptocurrency regulation.
The station Google Play Store bans crypto wallets successful 15 jurisdictions, requires caller licensing compliance appeared archetypal connected CryptoSlate.
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