Google Play Changes Policy on Tokenized Digital Assets, Allowing NFTs in Apps and Games

Google Play made a significant policy update today, announcing that developers can now integrate digital assets, including non-fungible tokens (NFTs), into their apps and games available on the store. To ensure transparency, companies offering the ability to buy, sell, or earn tokenized assets will be required to clearly state in the Play Console that the app includes blockchain-based elements.

Joseph Mills, Group Product Manager at Google Play, highlighted in a blog post shared with CoinDesk that this policy change will allow partners to reimagine traditional games by incorporating user-owned content and enhance user loyalty through unique NFT rewards. Reddit, known for its successful Avatar NFTs, collaborated with Google on this new policy. Matt Williamson, Senior Engineering Manager at Reddit, emphasized that the updated guidelines aim to create a fair environment that fosters user trust and responsible usage of blockchain technology.

Mills emphasized the importance of user trust, stating that while tokenized assets can create more immersive experiences, developers are not allowed to promote or glamorise potential earnings from playing or trading activities, in line with Google Play's Real-Money Gambling, Games, and Contests policy. This means that apps that do not meet the requirements for gambling eligibility cannot encourage the purchase of in-game items like "loot boxes" for a chance to win NFTs.

Previously, Google's approach to blockchain-based apps had been perceived as opaque, with games like "Bitcoin Blast" being removed from the Play Store in 2021 without clear explanations. In 2018, the store banned crypto mining apps, and this rule remains unchanged under the new guidelines.

Overall, Google has recently displayed a more positive attitude towards Web3. In 2022, they allowed the appearance of ArDrive Mobile, an app for decentralised data storage, in the store, and selected Google Play markets listed Axie Infinity: Origins. Additionally, Google Cloud announced an initiative in April 2023 to support Web3 developers in accelerating their startups.

A spokesperson from Google Play stated that we may see the first tests of the new experiences in late summer as they work with an initial group of developers, and that the new policy will roll out in full later this year.