The clarification, posted by Google’s official communications account on X late August 13, came after lawyers, developers, and high-profile Bitcoiners blasted an earlier interpretation of revised rules that appeared to force Anti-Money-Laundering and Know-Your-Customer checks on self-custody software in the United States and effectively box out indie wallet teams across the European Union.
The initial backlash was swift. VP of Regulatory Affairs at Paradigm Justin Slaughter called it a “surprising move… amid [Google’s] antitrust litigation,” arguing that “pure coding should not require a federal license,” while Jack Dorsey summed up the mood with a one-word verdict: “terrible.”
France and Germany have transitional windows before MiCA fully displaces national licensing. Google’s own policy pages and the updated explainers published Wednesday night underline that non-custodial wallets—apps where users retain their private keys and no third party takes custody—are outside this licensing scope.
The pivot capped a confusing news cycle. Several outlets reported during the day that Google would require licenses for all wallets, custodial and non-custodial alike, before clarifications on X and in follow-up coverage reversed that reading. Google’s statement confirms that self-custody apps are exempt, while noting that the Play Store will still gate custodial apps and exchanges in the US, EU, UK, and other listed markets. The net effect: the compliance burden shifts squarely onto entities that hold user funds, not the open-source code that enables users to hold their own.
Google states the blockchain content policy update becomes effective October 29, 2025, with additional Help Center links added to reflect the new requirements. In parallel, Google has reiterated—now on the record—that non-custodial wallets are outside the scope of these licensing checks.
At press time, the total crypto market cap stood at $4.11 trillion.
