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Jordan

Retail_Trading_Status

Allowed-Regulated Unknown
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Status Changed

Previous status: Banned

The primary reason for the difference in the analysis results and the identified status of retail cryptocurrency trading in Jordan – from "Banned" in the Previous Analysis to "Allowed-Regulated" in the New Analysis – is a significant legislative development: the introduction and enactment of Law No. 14 of 2025, the Virtual Assets Transactions Regulation Law. Justification for the differences: 1. Timing and Evolution of the Regulatory Landscape: The Previous Analysis accurately reflected the situation as of late January 2025. At that point, the Central Bank of Jordan's (CBJ) prohibition on financial institutions facilitating cryptocurrency transactions was the dominant factor, effectively creating a ban on regulated retail trading. The analysis correctly noted an "initiative to establish a comprehensive regulatory framework" as a future development, indicating that the landscape was poised for change but had not yet changed. The New Analysis, dated June 26, 2025, incorporates the crucial development that occurred after the timeframe of the previous report: the actual passing and impending effect of Law No. 14 of 2025. This law fundamentally alters the regulatory environment from prohibition to a structured, regulated system. 2. Shift from Prohibition to Regulation: The Previous Analysis determined the status as "Banned" because, despite no explicit law criminalizing individual possession, the CBJ's restrictions on banks and financial intermediaries made legitimate trading virtually impossible. Official warnings also strongly discouraged participation. The New Analysis identifies the status as "Allowed-Regulated" because Law No. 14 of 2025 provides a specific legal framework for virtual assets. It doesn't just lift the previous de facto ban but establishes a system where entities can be licensed to offer virtual asset services, including exchanges. This means individuals can legally buy, sell, and hold cryptocurrencies through these licensed and regulated channels. 3. Introduction of a Licensing Regime and Supervisory Body: The Previous Analysis highlighted the absence of a licensing regime and the CBJ's prohibitive stance. The New Analysis details that Law No. 14 of 2025 mandates that Virtual Asset Service Providers (VASPs) must obtain a license from the Jordan Securities Commission (JSC). This introduces a formal regulatory body responsible for overseeing the sector, a key characteristic of an "Allowed-Regulated" environment. 4. Implementation of AML/CFT and Consumer Protection Measures: The Previous Analysis cited the lack of consumer protection and risks of financial crime as reasons for the CBJ's warnings and ban. The New Analysis explains that the new law incorporates Anti-Money Laundering (AML), Counter-Terrorism Financing (CTF), and Know Your Customer (KYC) requirements for licensed VASPs. It also mentions provisions for segregating client assets, which contributes to consumer protection. These measures are typical of a regulated market. 5. Change in Official Stance: While the Previous Analysis focused on the CBJ's warnings and prohibitions, the New Analysis reflects a governmental shift towards embracing and regulating the digital economy, as evidenced by the enactment of the comprehensive virtual assets law. The new law aims to foster innovation and attract investment while mitigating risks. In essence, the Previous Analysis was a correct assessment of the situation based on the information available up to January 2025, where a prohibitive environment was in place, albeit with signals of future change. The New Analysis reflects the materialization of that change with the enactment of Law No. 14 of 2025, which has transitioned Jordan from a de facto ban to a formally regulated environment for retail cryptocurrency trading. The difference is not due to an error in the previous assessment but rather a direct consequence of subsequent, significant legal and regulatory reforms in Jordan.

Analysis ID
#251
Version
Archived
Created
2025-06-26 09:10
Workflow Stage
Initial Research

Executive Summary

Retail cryptocurrency trading is now legally permitted in Jordan but is subject to regulation following the introduction of Law No. 14 of 2025, the Virtual Assets Transactions Regulation Law. The Jordan Securities Commission (JSC) is responsible for licensing and supervising Virtual Asset Service Providers (VASPs), while the Central Bank of Jordan (CBJ) retains a role in authorizing virtual asset use for payments. Key requirements include obtaining a license, adhering to Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) measures, and implementing Know Your Customer (KYC) processes, aligning with international standards set by the Financial Action Task Force (FATF).

Key Pillars

The regulatory framework is built upon the Jordan Securities Commission (JSC) as the primary regulator for Virtual Asset Service Providers (VASPs), with the Central Bank of Jordan (CBJ) retaining authority over virtual asset use for payments. Core compliance requirements include thorough Know Your Customer (KYC) processes, Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) measures aligned with FATF standards, and segregation of client assets. Licensing is mandatory for entities providing virtual asset services such as exchanges, payment providers, and custodians.

Landmark Laws

Law No. 14 of 2025, the Virtual Assets Transactions Regulation Law:
- Date of issue: 2025
- Key mandates: Establishes a legal framework for cryptocurrencies, legally recognizing them as digital assets (though not legal tender), and mandates licensing for Virtual Asset Service Providers (VASPs). It also includes AML/CTF measures, KYC requirements, and treats virtual asset transfers as cross-border transactions, requiring data collection and retention.

Considerations

Cryptocurrencies are legally recognized as a form of digital asset in Jordan, but not as official legal tender. The regulatory framework aims to mitigate risks associated with virtual assets and enhance consumer protection. VASPs must treat virtual asset transfers as cross-border transactions and collect/retain data on involved parties. The JSC supervises VASPs, while the CBJ authorizes virtual asset use for payments.

Notes

Historically, the Central Bank of Jordan (CBJ) prohibited licensed financial institutions from dealing in cryptocurrencies and warned against their use. However, with the introduction of Law No. 14 of 2025, Jordan shifted to a regulated approach. The law came into effect 90 days after its publication in the Official Gazette. Penalties, including imprisonment and fines, are prescribed for unlicensed virtual asset activities.

Detailed Explanation

Prior to Law No. 14 of 2025, the Virtual Assets Transactions Regulation Law, Jordan's stance on cryptocurrencies was cautious and restrictive. The Central Bank of Jordan (CBJ) had previously issued warnings against cryptocurrency trading and prohibited licensed financial institutions (banks, currency exchanges, financial companies, and payment service companies) from dealing in or facilitating cryptocurrency transactions. These warnings highlighted risks such as volatility, financial crime, hacking, and the lack of consumer protection, emphasizing that cryptocurrencies are not legal tender in Jordan. Despite these restrictions, individuals in Jordan continued to engage in cryptocurrency trading through foreign platforms.

Law No. 14 of 2025 represents a significant shift, introducing a regulated approach towards virtual assets. This law provides a legal framework for cryptocurrencies, legally recognizing them as a form of digital asset but not as official legal tender. Entities wishing to provide virtual asset services, including crypto exchanges, payment providers, and custodians, must obtain a license from the Jordan Securities Commission (JSC). Specific activities requiring licensing include operating virtual asset platforms, exchanging virtual assets for fiat currency or other virtual assets, transferring virtual assets, and providing custodial services. Promoting unlicensed virtual asset services is strictly prohibited.

The regulatory framework incorporates Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) measures. Virtual Asset Service Providers (VASPs) are required to conduct thorough Know Your Customer (KYC) processes, segregate client assets, monitor transactions, and report suspicious activities. These requirements align with international standards, including those set by the Financial Action Task Force (FATF). Virtual asset transfers are to be treated as cross-border transactions, requiring data collection and retention on the parties involved.

While the JSC is responsible for licensing and supervising VASPs, the Central Bank of Jordan retains a role in authorizing the use of virtual assets for payment purposes and overseeing financial institutions involved in certain virtual asset activities, subject to prior approval. The law came into effect 90 days after its publication in the Official Gazette, fostering a robust digital economy, attracting investment, enhancing consumer protection, and mitigating risks. Penalties, including imprisonment and hefty fines, are prescribed for unlicensed activities. Therefore, individual citizens and residents can legally buy, sell, and hold cryptocurrencies, but this activity is now subject to a specific regulatory framework governing the platforms and service providers they interact with. Coinfomania noted that Law No. 14 of 2025 shifted the CBJ's view, requiring licensing for exchanges and stringent AML/CFT compliance. Lara on the Block highlighted that the law covers virtual assets, VASP licensing, and related AML/KYC requirements, allowing virtual assets for payments, investments, and more. Bitcoin.com News emphasized that the law prohibits unlicensed activities within Jordan, affecting service providers established or marketing to Jordanian clients.

Summary Points

Retail Cryptocurrency Trading Status in Jordan: Regulatory Overview (June 2025)

1. Overall Regulatory Status:

  • Allowed-Regulated: Individual citizens and residents are legally permitted to buy, sell, and hold cryptocurrencies. However, this activity is subject to a specific regulatory framework.
  • Not Legal Tender: Cryptocurrencies are legally recognized as a form of digital asset but are not considered legal tender in Jordan.

2. Key Regulatory Bodies & Roles:

  • Jordan Securities Commission (JSC):
    • Primary regulator for virtual asset services.
    • Responsible for licensing and supervising Virtual Asset Service Providers (VASPs).
    • Enforces compliance with the Virtual Assets Transactions Regulation Law.
  • Central Bank of Jordan (CBJ):
    • Retains authority over the use of virtual assets for payment purposes.
    • Oversees financial institutions involved in certain virtual asset activities, subject to prior approval.
    • Historically issued warnings against cryptocurrency trading (pre-2025 law).

3. Key Legislation & Regulations:

  • Law No. 14 of 2025: Virtual Assets Transactions Regulation Law:
    • Provides the legal framework for cryptocurrencies in Jordan.
    • Legally recognizes cryptocurrencies as digital assets.
    • Mandates licensing for VASPs.
    • Incorporates Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) measures.
    • Came into effect 90 days after publication in the Official Gazette.

4. Requirements for Compliance (for VASPs):

  • Licensing: All entities providing virtual asset services must obtain a license from the JSC.
    • Activities requiring licensing include:
      • Operating virtual asset platforms (exchanges).
      • Exchanging virtual assets for fiat currency or other virtual assets.
      • Transferring virtual assets.
      • Providing custodial services.
  • Know Your Customer (KYC): VASPs must conduct thorough KYC processes for all clients.
  • Anti-Money Laundering (AML) & Counter-Terrorism Financing (CTF):
    • VASPs must adhere to AML/CTF laws.
    • Monitor transactions and report suspicious activities.
  • Asset Segregation: VASPs must segregate client assets from company assets.
  • Data Collection & Retention: Virtual asset transfers are treated as cross-border transactions, requiring data collection and retention on the parties involved.

5. Notable Restrictions & Limitations:

  • Unlicensed Activities Prohibited: Conducting or promoting virtual asset activities without a license from the JSC is strictly prohibited.
    • This applies to service providers established or with a business presence in Jordan, or those marketing services to Jordanian clients.
  • Scope of the Law: The Virtual Assets Transactions Regulation Law does not cover:
    • Digital securities already regulated by the JSC.
    • Digital representations of fiat currency issued by the CBJ.
    • Investment funds under separate legislation.

6. Recent Developments & Changes:

  • Shift from Prohibitive Stance: Jordan has moved from a largely prohibitive stance to a regulated approach towards virtual assets with the introduction of Law No. 14 of 2025.
  • Focus on Consumer Protection & Risk Mitigation: The new law aims to foster a robust digital economy, attract investment, enhance consumer protection, and mitigate risks associated with virtual assets.
  • Penalties for Non-Compliance: Penalties, including imprisonment and hefty fines, are prescribed for unlicensed activities.

Full Analysis Report

Report on the Current Status of Retail Cryptocurrency Trading in Jordan

Date: 2025-06-26

Topic: Retail_Trading_Status

Description: Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

1. Identified Current Status: Allowed-Regulated

2. Detailed Narrative Explanation:

Historically, Jordan's stance on cryptocurrencies was cautious and restrictive. The Central Bank of Jordan (CBJ) had previously issued warnings against cryptocurrency trading and prohibited licensed financial institutions (banks, currency exchanges, financial companies, and payment service companies) from dealing in or facilitating cryptocurrency transactions. These warnings highlighted risks such as volatility, financial crime, hacking, and the lack of consumer protection, emphasizing that cryptocurrencies are not legal tender in Jordan. Despite these restrictions on financial institutions, individuals in Jordan continued to show interest and engage in cryptocurrency trading, often through foreign platforms.

A significant shift has occurred with the introduction of Law No. 14 of 2025, the Virtual Assets Transactions Regulation Law. This law marks Jordan's move from a largely prohibitive stance to a regulated approach towards virtual assets. The law provides a legal framework for cryptocurrencies, legally recognizing them as a form of digital asset, though not as official legal tender.

Under this new legislation, entities wishing to provide virtual asset services, including crypto exchanges, payment providers, and custodians, must obtain a license from the Jordan Securities Commission (JSC). The law outlines specific activities that require licensing, such as operating virtual asset platforms, exchanging virtual assets for fiat currency or other virtual assets, transferring virtual assets, and providing custodial services. Promoting unlicensed virtual asset services is strictly prohibited.

The regulatory framework also incorporates Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) measures. Virtual Asset Service Providers (VASPs) are required to conduct thorough Know Your Customer (KYC) processes, segregate client assets, monitor transactions, and report suspicious activities. These requirements align with international standards, including those set by the Financial Action Task Force (FATF). The law also stipulates that virtual asset transfers are to be treated as cross-border transactions, requiring data collection and retention on the parties involved.

While the JSC is responsible for licensing and supervising VASPs, the Central Bank of Jordan retains a role in authorizing the use of virtual assets for payment purposes and overseeing financial institutions involved in certain virtual asset activities, subject to prior approval.

The law aims to foster a robust digital economy, attract investment, enhance consumer protection, and mitigate risks associated with virtual assets. Penalties, including imprisonment and hefty fines, are prescribed for unlicensed activities. The law came into effect 90 days after its publication in the Official Gazette.

Therefore, while individual citizens and residents can legally buy, sell, and hold cryptocurrencies, this activity is now subject to a specific regulatory framework governing the platforms and service providers they interact with.

3. Specific, Relevant Text Excerpts:

  • Coinfomania (referencing Law No. 14 of 2025): "Jordan entered a new era of digital finance the day Law No. 14 of 2025 was passed, which gave birth to the Virtual Assets Transactions Regulation Law. The law constructs a legal framework for cryptocurrencies, and the CBJ's plan, which previously had a somewhat restrictive view, shifted. The present rules demand licensing for exchanges while maintaining stringent AML/CFT compliance as part of a regulated market access structure."
  • Coinfomania (on licensing): "Licensing – All crypto providers are required to register with the Jordan Securities Commission."
  • LARA on the Block (on Law No. 14 of 2025): "Jordan has passed its virtual asset regulations which will become applicable within the next 90 days. The law covers what is considered as virtual assets, what virtual asset service providers are allowed to be licensed as well as all the related AML and KYC requirements. Law No 14 of 2025, notes that virtual assets can be used for payments, investments, and more. It also notes that VASPs can be licensed as crypto exchanges, crypto payment providers as well as crypto custodians."
  • Bitcoin.com News (on licensing and prohibitions): "The law prohibits individuals or entities from conducting or promoting virtual asset activities within the kingdom unless licensed by the Securities Commission. Activities are considered within the kingdom if the service provider is established or has a business presence in Jordan or markets its services to Jordanian clients."
  • Central Bank of Jordan (historical stance, pre-2025 law): "The Central Bank of Jordan prohibits banks, currency exchanges, financial companies, and payment service companies from dealing in bitcoins or other digital currencies. While it warned the public of risks of bitcoins, and that they are not legal tender, bitcoins are still accepted by small businesses and merchants." (This quote illustrates the previous stance, which has now evolved with the new law).
  • Freeman Law (summarizing historical CBJ stance): "The Central Bank of Jordan (CBJ) enacted legislation that prohibits all banks, currency exchange companies, financial entities, and payment service providers from facilitating any cryptocurrency transactions, including Bitcoin. Consequently, cryptocurrency trading is virtually prohibited under the laws of Jordan. In addition to the prohibition, the CBJ issued an official warning about the risks of cryptocurrency trading." (This quote also reflects the historical context prior to the 2025 law).
  • Global Legal Insights / Lara Legal (on the new law's scope): "The Virtual Assets Transactions Regulation Law applies to entities and individuals involved in virtual asset services within Jordan. It does not cover digital securities already regulated by the Jordan Securities Commission (JSC), digital representations of fiat currency issued by the Central Bank of Jordan, or investment funds under separate legislation."
  • Global Legal Insights / Lara Legal (on AML/CTF and consumer protection): "The law mandates that VASPs must: Segregate client assets from company assets. Adhere to AML/CTF laws and report suspicious activity. Treat virtual asset transfers as cross-border transactions. Collect and retain data on transfers and involved parties."

4. Direct, Accessible URL Links to Specific Sources:

Web Sources (18)

Sources discovered via web search grounding

Search queries used (7)
  • Retail cryptocurrency trading status Jordan 2024 2025
  • Central Bank of Jordan cryptocurrency regulations
  • Jordan Securities Commission cryptocurrency rules
  • Is cryptocurrency trading legal in Jordan for individuals?
  • Jordan cryptocurrency laws and regulations
  • Warnings issued by Jordanian authorities on cryptocurrency trading
  • KYC/AML requirements for cryptocurrency platforms in Jordan
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