The new policy from Google is a significant step towards regulating the crypto app landscape on its platform. The company now requires developers of cryptocurrency exchanges and custodial software wallets to hold the appropriate licenses or be registered with relevant authorities in a list of 15 jurisdictions. This list includes major markets such as the United States, the United Kingdom, and the European Union, among others. Developers in the U.S. must register with the Financial Crimes Enforcement Network (FinCEN) or be authorized as a bank, while those in the E.U. need to be certified as a crypto-asset service provider (CASP) under the Markets in Crypto-Assets (MiCA) regulation. This move, which does not apply to non-custodial wallets, aims to create a more secure and regulated environment for users.
To comply with the new policy, developers must declare their app as a cryptocurrency exchange and/or software wallet in the “Financial Features Declaration” section of the App Content. Google has stated that it may request additional information regarding compliance in jurisdictions not on the initial list, as the regulatory landscape for cryptocurrencies is constantly changing. For developers who do not have the necessary licensing for a particular region, the company is urging them to remove their apps from being targeted in those countries. This signals a clear effort by Google to enforce compliance and ensure that only properly vetted and regulated services are available to users in these key markets.
This policy update from Google comes at a time when the threat of cryptocurrency-related scams is a growing concern for law enforcement. The FBI recently issued an alert warning of a new type of fraud where scammers target victims of previous crypto scams. These fraudsters pose as lawyers from fictitious law firms and claim to help victims recover their stolen funds. They often use tactics like creating fake websites, using group chats on messaging apps, and having detailed knowledge of the victim’s previous losses to gain their trust.
The FBI’s alert highlights the scale of this problem, noting that between February 2023 and February 2024, victims who were re-targeted by these fake law firms reported losses totaling over $9.9 million. The bureau has provided a list of red flags for users to watch out for, including requests for payment in cryptocurrency or gift cards, being placed into a group chat with other “clients,” and a representative’s inability to provide proper credentials or a license. These warnings underscore the importance of exercising due diligence and adopting a “zero-trust” model when approached by anyone offering to help recover lost funds.
In conclusion, Google’s new policy and the FBI’s recent alert both point to a shared objective: to create a safer and more transparent ecosystem for cryptocurrency users. By requiring developers to be licensed in key markets, Google is taking a proactive step to ensure that the apps available on its platform are legitimate and compliant with financial regulations. Similarly, the FBI’s warning serves to educate the public about the evolving nature of crypto scams, empowering users to protect themselves from further financial loss. Together, these actions aim to build a more trustworthy environment for a rapidly expanding and often volatile industry.
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