Why are app stores strict on cryptocurrency app submission?

[Baghdad]

scanned through some crypto groups and found developers listing out on the requirements for the submission of a crypto based app like wallets to be successfully accepted on app stores. Rules like submitting through a corporate account for any crypto app and wallets used for holding and exchanging crypto, must give details in a paperwork on how it complied with AML and KYC, made me search for clarification here. So does this mean that any app, software or website that has to do with crypto exchange, send and receive need to approve and comply with the kyc policy? And comply to the regulation for any region. This doesn't appear to be helpful as they claim for the cryptocurrency niche. Although it limits the rate of crappy blockchain softwares being shared on app store and stop scam app, but many crypto apps that bypassed such regulations still malfunction and people get to lose their money.
 
https://support.google.com/googleplay/android-developer/answer/13607354?hl=en

[Charles-Tim]

You mean this:

Cryptocurrency Exchanges and Software Wallets

The purchase, holding, or exchange of cryptocurrencies should be conducted through certified services in regulated jurisdictions.

You must also comply with applicable regulations for any region or country that your app targets and avoid publishing your app where your products and services are prohibited. Google Play may request you to provide additional information or documents regarding your compliance with any applicable regulatory or licensing requirements.

There are many wallets and crypto platforms that requires no KYC but have applications on Google Playstore. Bitcoin noncustodial wallets if not 100% do not require anyone to do KYC or get verified. That is how noncustodial wallet should be. There are also some exchanges that require no KYC but having app on application stores.

The exchanges and and custodial wallets creator are having problem with regulators has been what we have been seeing than having problem witt those application stores.

[mk4]

You said it yourself — app stores from Google and Apple are strict because there are a crap ton of scam apps trying to get into these app stores. Obviously it doesn't totally eliminate scams because anyone can still create a scam website, but it sure does somewhat decrease scams even though fake apps still frequently get through Google's Play Store.

[tranthidung]

scanned through some crypto groups and found developers listing out on the requirements for the submission of a crypto based app like wallets to be successfully accepted on app stores.

Before they became strict, assuming that they are strict with their policies now, they opened their stores for developers to make submissions and get easy approvals. Many people were victims of fake applications because of bad managements from Google and Apple especially Google on their Play Store.

Apple do this better than Google in many years with more stricter regulation from governments on KYC, AML and costly fines on Binance, Kucoin recent months, these giant companies have reasons to feel fearful. What they do? Tighten their policies to meet latest changes on regulation but my doubt is they do this ultimately to protect users. It seems their ultimate goal is protect themselves first, users later because if users first, they would have managed like this years ago.

Why KYC is extremely dangerous – and useless

[Findingnemo]

Although it limits the rate of crappy blockchain softwares being shared on app store and stop scam app, but many crypto apps that bypassed such regulations still malfunction and people get to lose their money.
 
https://support.google.com/googleplay/android-developer/answer/13607354?hl=en

Exchanges and wallets are two different things.

I don't know the exact criteria required to list an app on playstore or app store but it will be according to the nature of the utility and when an app involves fiat deposits then KYC must be mandatory for the regulations' sake which doesn't eliminate the scammers completely but narrowed them down from ocean of them.

There are also some applications are known scams still exist on the app stores.

For example Freewallet is a known scam wallet but it's still available on both playstore^[1] and app store^[2].

1. https://play.google.com/store/apps/details?id=app.frwt.wallet&pli=1
2. https://apps.apple.com/us/app/fw-secure-defi-crypto-wallet/id6470998165

So as user you also need to have little responsibility while choosing a wallet for your crypto assets.

[logfiles]

Products like Google are one of the tools that the Governments can use to enforce their annoying regulations. The KYC/AML rules do exist, but I think the regulators have not yet become too strict to force Google play or App store to enforce them on any developer who uploads any crypto related app or wallet on those stores

I think with time, as the regulations become tighter, those apps are going to get forced out of the "Official" stores. If one want to install the apps at least for android, they may end up having to use third party app stores that are less strict or just download the execution app files directly from the official website

[PX-Z]

Rules like submitting through a corporate account for any crypto app and wallets used for holding and exchanging crypto, must give details in a paperwork on how it complied with AML and KYC, made me search for clarification here. So does this mean that any app, software or website that has to do with crypto exchange, send and receive need to approve and comply with the kyc policy? And comply to the regulation for any region.

If the app has exchange feature it means it has a business model, which also means that you have the legal documents of running a business in a certain country or countries since you can limit what country can use/download your app, that's how google works.

But if its only for the use of wallet from a nonprofit org./team/etc. i don't think it needs legal documents, if so, that's total crap, but it is still reasonable though, many will just dont like the idea.

[stafstor]

For example Freewallet is a known scam wallet but it's still available on both playstore^[1] and app store^[2].

Google once banned Freewallet (It was probably several years ago) and some days ago deleted Freewallet's copy FRWT.
The question is why didn't Apple team react to numerous facts of fraud.

[Alone055]

There are many wallets and crypto platforms that requires no KYC but have applications on Google Playstore. Bitcoin noncustodial wallets if not 100% do not require anyone to do KYC or get verified. That is how noncustodial wallet should be. There are also some exchanges that require no KYC but having app on application stores.

The exchanges and and custodial wallets creator are having problem with regulators has been what we have been seeing than having problem witt those application stores.

The thing is, that app stores such as Google's PlayStore or Apple's App Store require firms and users submitting applications to be listed to have legal rights to do that from or within the jurisdictions they are providing their services because most such apps allow users to do swaps or exchange their coins or tokens from one to another which would require the application vendor to have necessary licenses to be operating these functions within the jurisdictions their app is usable.

I also believe that if there is a wallet or something that doesn't provide any services other than storing coins or tokens and not asking for KYC from their customers wouldn't be asked for documentation or showing any legality, etc., but I'm not sure. Electrum is one example of such wallets which is present in PlayStore and doesn't require any KYC or anything because it's a noncustodial wallet, and it doesn't have options such as Swap or Convert, etc.

[Ojima-ojo]

Those apps stores must also follow regulations and that is why their require such paper works and documents for apps to get through, because at some point their will have the responsibility to protect their apps users.

Their can allow any scam app and the rest of the harmful stuffs get listed on the store in other to protect the clients, so let it be instead of worrying yourself about apps stores doing the right thing.

[BIT-BENDER]

Well it's not just crypto-currency apps that face this scrutiny from app store, many financial based apps also goes through this same issue, although I am not surprised that this is the case because they are only trying to ensure the safety of users.
In between those requirements aren't something out if the ordinary and still many crypto-currency apps passes this and have their apps accepted, so it's not a big deal.

[Dunamisx]

scanned through some crypto groups and found developers listing out on the requirements for the submission of a crypto based app like wallets to be successfully accepted on app stores.

There are apps in which are not been received from a trusted credential and such could poses the kind of harm they wouldn't allow to have on their list of supported apps, so they will require then to go through some required procedures just to secure the the safety of their users, apps store doesn't support an app is not a close deal that the app in question is not trusted or is having harm in disguise, but any non compliance to set protocols may only lead to being barred from a service, which should tell more on why some apps were not found on the apps store.

[tech30338]

This has something to do with security, since they already know how big the impact it will cause to customers, at the same time with their products even though they are more secure than android they can't let any app get in without checking, since this apps might post a threat to their users.

[Crypt0Gore]

They should be.

There are too many fake apps on Play store and others, in short this move is coming too late, maybe they've finally got too many complains and it is affecting them big time, because years ago people complained and the team don't care.

Now that they care we shouldn't be complaining, go with whatever they ask of you and pass the necessary requirements, it is for users sake that they have get this wicked and I like it.

Till this day scammers are still creating fake crypto wallets and lookalikes, this issue needs to be tackled.

[Findingnemo]

For example Freewallet is a known scam wallet but it's still available on both playstore^[1] and app store^[2]

Google once banned Freewallet (It was probably several years ago) and some days ago deleted Freewallet's copy FRWT.
The question is why didn't Apple team react to numerous facts of fraud.

Google or Apple it's a company that may have their own rules and criteria and that's why we have to choose the open source platforms for installing apps unfortunately not many options are available so we stuck with either this or that but both are terrible when it comes to secure their users from these kind of events and irony is Apple claims that they are most secured platform won't talk about anything similar to these.

[Cookdata]

Google or Apple it's a company that may have their own rules and criteria and that's why we have to choose the open source platforms for installing apps unfortunately not many options are available so we stuck with either this or that but both are terrible when it comes to secure their users from these kind of events and irony is Apple claims that they are most secured platform won't talk about anything similar to these.

Developer that is in his right sense will rather create a veritable landing page or website for people to download his open source software than put it in Google play store. I don't know for Apple store but there aren't much crypto app on their play store because of their strict rules and verification of app submission and also government policy on crypto ruling. A page enough for people to let user download for PC and windows, even Apple can be downloaded on the website, verified with a signature but running apple, you will have to enable developer mode on the settings but of course it comes with a caution.

There was a time metamask and Apple store were having some misunderstanding and when I check some conditions Apple gave them, you will understand that these companies want crypto money but doesn't want to entertain cryptocurrency but I hope by the time it get the widespread adoption, it wouldn't be too late for them.

[LTU_btc]

Interesting thing - sometimes it looks that legit business have to go through so much stuff which makes all proccesses very complicated, meanwhile Google Play is full of scam apps on the same time. Strange stuff 
But as said above, these strict verifications isn't bad thing when it comes to protecting people from scams. But if I would run crypto business, I would hate to go through all these things .
Google always gave lot of freedom when it comes to uploading apps and it's not always good thing. Apple is more strict on these things, not only on crypto apps, but on all kind of apps.

[Findingnemo]

Developer that is in his right sense will rather create a veritable landing page or website for people to download his open source software than put it in Google play store. I don't know for Apple store but there aren't much crypto app on their play store because of their strict rules and verification of app submission and also government policy on crypto ruling. A page enough for people to let user download for PC and windows, even Apple can be downloaded on the website, verified with a signature but running apple, you will have to enable developer mode on the settings but of course it comes with a caution.

You do realize that most of the apps are created for profit making not really by a community of people for free?

Building an app takes time and money so the creator should find a way to monetize their products to make profits out of it so even though they manage to create their own platform they can never compete with the two market stores which probably have over billion users so from business point of view they are doing what's best for them.

IOS and android are both smartphone OS and sure we can use simulators to run them on PC but why would people even bother doing it?

[tabas]

As long as money is related to these listings, the taking down of many scam apps through these platforms will never stop. What matters to them are money, money, and money. That's why despite the help of the community of helping them to take down all of these scammer apps published on their platforms, it won't matter in the long run unless the act starts from them in having integrity in filtering and becoming stricter with the publishing of these apps especially related to cryptocurrencies and finance.

[KiaKia]

For example Freewallet is a known scam wallet but it's still available on both playstore^[1] and app store^[2].

Google once banned Freewallet (It was probably several years ago) and some days ago deleted Freewallet's copy FRWT.
The question is why didn't Apple team react to numerous facts of fraud.

I would have literally become a crypto whale today if not for what freewallet did to me, they show me hell, I lost millions in Doge coin and some LTC/BTC to free wallet, till this day I still can't log into the wallet again, they blocked me out.

Stupid me I don't know the difference between a custodial crypto wallet and a noncustodial crypto wallet, I felt that using just your email account to create a wlalet is the tastest and most easy, not knowing that I was digging my own grave.

At this point it is not left for app stores to start doing this, it is on users to start knowing the difference from scam crypto wallet and the real ones, we are responsible for our own safety in this crypto world.