Google Play Store introduced license requirements for cryptocurrency wallet applications in 15 areas of law, including the US and the EU.
According to a report from the Fury, Developers must obtain legal approvals before publishing apps on the platform.
In addition, the policy that developers of software wallet must comply with local financial regulations “to guarantee a safe and in accordance with ecosystem for users.”
The requirements apply to both storage and non-custodial portfolios, creating compliance costs that many developers cannot meet.
In the US, developers must register at Fincen as a money service company (MSB) and obtain state money permits, or operate as federal or by the state.
MSB registration requires compliance with strict anti-wue wages, terrorist financing against terrorists and knows your customer frameworks.
Policy exceeds the legal requirements
The report noted that the requirements of Google reach beyond the current legal obligations for non-rights portfolios.
The guidelines of Fincen 2019 on convertible virtual currencies distinguish itself between “hosted” storage and “non-resistant” non-indicators, and explicitly declares that non-falsification portfolios are not eligible as money channels under existing regulations.
The compliance programs required for MSBs are the highest cost burden for financial institutions and would effectively exclude most non-guardianship wallet developers from the Play Store.
The policy forces AML and KYC requirements for all non-required portfolios available via standard Google devices.
Industry’s criticism has risen
Consensys Lawyer Bill Hughes marked The policy insistencies on 1 August and noted that Google announced the updated policy on 10 July without clearly defining the terminology of the “software wallet”.
Hughes noted that registering as MSB “something is that fincing specifically and clearly does not require” for non-felt account.
He added:
“They do not define the term and do not acknowledge that registering as MSB is something that fincen has specifically and clearly not requires.”
He noticed on the broader statement of Google that cryptocurrency activities “should be carried out via certified services in regulated areas of law”, despite the fact that certification is not required by law.
Hughes characterized the situation as “a bit of a mess” and warned that “the last boss for Crypto is rather the big technical platforms that still dictate the most important distribution channels for Crypto app.”
Justin Slaughter, vice -president of regulatory items at Paradigm, criticized The policy as particularly problematic in view of the current antitrust rights cases of Google.
He said:
“Surprising relocation here by Google, especially in the midst of their antitrust disputes, to suddenly set draconian limitations to people who make non-complainants available in the App Store.”
SLUUDHT referred to pending congress legislation and noted that “pure coding should not require a federal license” as set out in draft tickets that tackle the cryptocurrency regulation.