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Jordan

Retail_Trading_Status

Allowed-Regulated Unknown
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2025-06-26 12:47
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Executive Summary

As of June 2025, Jordan has transitioned from a largely prohibitive stance on retail cryptocurrency trading to an "Allowed-Regulated" environment. This significant shift is primarily driven by the enactment of Law No. 14 of 2025, officially known as the "Virtual Assets Transactions Regulation Law." This landmark legislation establishes a comprehensive legal framework for virtual assets, enabling residents and users to trade cryptocurrencies under a structured and supervised regime. The regulatory oversight is primarily vested in the Jordan Securities Commission (JSC), with the Central Bank of Jordan (CBJ) retaining authority over certain payment-related aspects and banking integration. The new law aims to foster financial innovation, attract investment, and enhance consumer protection while combating financial crimes.

Key Pillars

  • Licensing and Registration: The Virtual Assets Transactions Regulation Law mandates that all Virtual Asset Service Providers (VASPs) operating within Jordan must obtain a license from the Jordan Securities Commission (JSC). This includes entities involved in operating virtual asset platforms, exchanging virtual assets for fiat or other crypto assets, transferring virtual assets, providing custodial services, and offering financial services for token sales or issuers. Unlicensed activities are strictly prohibited and subject to severe penalties.

  • Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) Compliance: A crucial aspect of the new regulations is the stringent enforcement of AML/CFT requirements. Licensed VASPs are obligated to adhere to Know-Your-Customer (KYC) protocols, segregate client assets, and report suspicious activities to the Anti-Money Laundering and Counter Terrorist Financing Unit (AMLU), which operates under the Central Bank of Jordan. Virtual asset transfers are treated as cross-border transactions, requiring data collection and retention on transfers and involved parties. This aligns with Jordan's efforts to address concerns flagged by the Financial Action Task Force (FATF).

  • Consumer Protection: The regulatory framework prioritizes investor protection by requiring VASPs to segregate client assets from company assets and ensuring transparency in operations. The law also aims to combat fraud and market manipulation within the digital asset markets.

  • Regulatory Oversight: While the JSC is the primary licensing and supervisory authority for VASPs, the Central Bank of Jordan plays a significant role in overseeing financial institutions engaging in crypto-related services, requiring pre-approval, and explicitly authorizing the use of virtual assets for payment purposes.

Landmark Laws

Law No. 14 of 2025: The Virtual Assets Transactions Regulation Law
- Authority: The law was passed by the Jordanian Parliament (specifically, approved by the Jordanian Senate Finance and Economic Committee and received from the House of Representatives) and subsequently issued by His Majesty King Abdullah II Ibn Al Hussein, and published in the Official Gazette. The Jordan Securities Commission (JSC) is the primary regulatory body responsible for licensing, monitoring, and supervising Virtual Asset Service Providers (VASPs) under this law. The Central Bank of Jordan (CBJ) retains an oversight role, particularly concerning the use of virtual assets for payments and financial institutions' involvement.
- Date: Enacted in June 2025. The law came into force 90 days after its publication in the Official Gazette. Key preparatory steps included approval by the Jordanian Cabinet in January 2025 and the Senate Finance and Economic Committee in May 2025.
- Summary: This law fundamentally changed Jordan's approach to cryptocurrencies, shifting from a long-standing unofficial prohibition by the Central Bank of Jordan to a regulated environment. It now legally recognizes cryptocurrencies as virtual assets (though not legal tender) and permits regulated crypto businesses to operate, allowing residents and users to trade on cryptocurrency platforms. This framework is expected to attract fintech innovation, stimulate foreign investment, and enhance the country's position as a compliance-friendly crypto hub in the region.

Considerations

  • Asset Classification: The "Virtual Assets Transactions Regulation Law" defines a "Virtual Asset" as "a digital representation of value that can be traded, transferred, or used for payment or investment purposes". However, it explicitly excludes digital securities, digital representations of fiat currency issued by the Central Bank of Jordan (CBDCs), and investment funds already regulated under separate legislation. Cryptocurrencies are not recognized as legal tender in Jordan.

  • Taxation: As of June 2025, Jordan has not finalized crypto-specific tax laws. Nevertheless, cryptocurrency transactions may fall under existing capital gains or corporate tax rules. Clearer crypto tax policies are anticipated by 2026.

  • Payment Use: While the law allows for virtual asset-related activities, their use for payments within Jordan requires explicit approval from the Central Bank of Jordan.

  • Penalties for Non-Compliance: Individuals and entities found to be engaged in unlicensed virtual asset activities or non-compliance with the new regulations face significant penalties, including imprisonment of not less than one year and fines ranging between $70,500 and $141,000. Jordanian authorities are also empowered to shut down unlicensed entities.

Notes

  • Historical Context: Prior to June 2025, the Central Bank of Jordan maintained a conservative and largely prohibitive stance on cryptocurrencies, banning financial institutions from dealing with them due to concerns about volatility, fraud, and money laundering. Despite this, peer-to-peer (P2P) crypto trading continued informally.

  • Regulatory Evolution: The enactment of Law No. 14 of 2025 follows a proactive initiative approved by the Jordanian government Cabinet in January 2025 to establish a comprehensive regulatory framework for virtual and digital assets within one year. The process involved consultations with the industry and key stakeholders, including the Central Bank of Jordan, the Jordan Securities Commission, and the Prime Minister's Office.

  • Addressing FATF Concerns: This regulatory shift is also a strategic move to address gaps flagged by the Financial Action Task Force (FATF), which had placed Jordan on its grey list in 2023 due to concerns over virtual asset risks and money laundering vulnerabilities.

  • Blockchain Strategy: In parallel with the crypto regulation, Jordan has been advancing its broader Blockchain Strategy, approved in late 2024 and set for full implementation by 2025. This strategy aims to integrate blockchain into various governmental services to enhance transparency, efficiency, and foster innovation.

  • CBDC Research: The Central Bank of Jordan continues to observe developments in cryptocurrencies and is conducting in-depth research into the potential of a Central Bank Digital Currency (CBDC), with trials possible by 2026-2027.

  • Market Outlook: The new regulations are expected to boost the crypto market in Jordan, with projected revenue reaching US$29.4 million in 2025 and an anticipated user base of 894.75 thousand by 2026. The framework is modeled after successful regulations in countries like the UAE and Bahrain, aiming to attract foreign investment and position Amman as a compliance-friendly crypto center.

Detailed Explanation

Jordan's enactment of the Virtual Assets Transactions Regulation Law in June 2025 represents a pivotal moment in the country's financial landscape, signaling a clear commitment to integrating digital assets into its formal economy under a robust regulatory framework. This law effectively repeals the previous implicit ban by the Central Bank of Jordan on cryptocurrency trading, ushering in an era of regulated activity for residents and users. The core of this new regulatory structure is centered on mandatory licensing for all Virtual Asset Service Providers (VASPs) by the Jordan Securities Commission (JSC). This ensures that entities offering services such as operating virtual asset platforms, exchanging cryptocurrencies, providing custodial services, or facilitating token sales, operate under strict oversight. This licensing requirement is complemented by rigorous Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) compliance measures, including Know-Your-Customer (KYC) protocols, client asset segregation, and mandatory suspicious activity reporting. These steps are crucial for enhancing transparency and security, aligning Jordan with international standards and addressing previous concerns from bodies like the Financial Action Task Force (FATF). While the law broadly defines "virtual assets" to encompass various digital representations of value for trading, transfer, payment, or investment, it clearly distinguishes them from digital securities and Central Bank Digital Currencies (CBDCs), which fall under separate regulatory domains. Importantly, cryptocurrencies are not granted legal tender status in Jordan, meaning they are not officially recognized for debt settlement or mandatory acceptance. Furthermore, any use of virtual assets for payment purposes within the country requires explicit approval from the Central Bank of Jordan, underscoring the CBJ's continued vigilance over monetary stability. The regulatory framework is further solidified by significant penalties, including imprisonment and substantial fines, for those found to be operating without a license or in violation of the established rules. This progressive move reflects Jordan's broader vision for economic modernization and its ambition to become a regional fintech hub. The development of this comprehensive framework was a strategic initiative that gained momentum throughout early 2025, involving collaborative efforts from various government bodies including the Cabinet, Senate Finance and Economic Committee, Central Bank, and the Jordan Securities Commission. Beyond just regulation, Jordan is also actively pursuing a national Blockchain Strategy, slated for full implementation by the end of 2025, which aims to integrate distributed ledger technology into public services. While a dedicated crypto tax framework is yet to be finalized, with clarity expected by 2026, the current regulations lay a robust foundation for a secure and innovative digital asset ecosystem in Jordan.

Summary Points

Here's a clear, well-structured bullet point summary of Jordan's Retail Crypto Trading Regulations as of June 2025:

## Jordan's Retail Crypto Trading Regulations (June 2025)

### 1. Regulatory Status of Retail Crypto Trading
* Status: Allowed-Regulated.
* Shift: Transitioned from a previously prohibitive stance by the Central Bank of Jordan (CBJ) to a regulated environment.
* Driving Force: Enactment of Law No. 14 of 2025, the "Virtual Assets Transactions Regulation Law."

### 2. Key Regulatory Bodies and Their Roles
* Jordan Securities Commission (JSC):
* Primary licensing and supervisory authority for Virtual Asset Service Providers (VASPs).
* Responsible for monitoring and supervising VASP operations.
* Central Bank of Jordan (CBJ):
* Retains oversight for financial institutions engaging in crypto-related services (requiring pre-approval).
* Explicitly authorizes the use of virtual assets for payment purposes.
* Conducts research into a Central Bank Digital Currency (CBDC).
* Anti-Money Laundering and Counter Terrorist Financing Unit (AMLU):
* Operates under the CBJ.
* Receives suspicious activity reports from licensed VASPs.
* Jordanian Parliament & His Majesty King Abdullah II Ibn Al Hussein:
* Enacted and issued Law No. 14 of 2025.

### 3. Important Legislation and Regulations
* Law No. 14 of 2025: The Virtual Assets Transactions Regulation Law
* Title: Officially "Virtual Assets Transactions Regulation Law."
* Authority: Passed by Parliament (approved by Senate Finance and Economic Committee) and issued by His Majesty King Abdullah II Ibn Al Hussein.
* Date: Enacted in June 2025. Came into force 90 days after its publication in the Official Gazette.
* Impact:
* Fundamentally changed Jordan's approach from unofficial prohibition to a regulated market.
* Legally recognizes cryptocurrencies as "virtual assets."
* Permits regulated crypto businesses to operate, allowing residents to trade.
* Aims to attract fintech innovation, stimulate foreign investment, and enhance consumer protection.

### 4. Requirements for Compliance
* Mandatory Licensing:
* All Virtual Asset Service Providers (VASPs) must obtain a license from the JSC.
* Applies to entities involved in: operating virtual asset platforms, exchanging virtual assets, transferring virtual assets, providing custodial services, and offering financial services for token sales/issuers.
* Anti-Money Laundering (AML) & Counter-Terrorist Financing (CFT):
* Strict adherence to AML/CFT laws.
* Know-Your-Customer (KYC): Mandatory protocols for all clients.
* Client Asset Segregation: VASPs must segregate client assets from company assets.
* Suspicious Activity Reporting: Obligation to report suspicious activities to the AMLU.
* Data Collection: Required for virtual asset transfers, including information on transfers and involved parties.
* Consumer Protection:
* Ensuring transparency in VASP operations.
* Measures to combat fraud and market manipulation.

### 5. Notable Restrictions or Limitations
* Legal Tender Status: Cryptocurrencies are explicitly not considered legal tender in Jordan.
* Payment Use: Use of virtual assets for payments within Jordan requires explicit approval from the Central Bank of Jordan (CBJ).
* Asset Classification Exclusions: The law's definition of "Virtual Asset" explicitly excludes:
* Digital securities.
* Digital representations of fiat currency issued by the CBJ (CBDCs).
* Investment funds already regulated under separate legislation.
* Penalties for Non-Compliance:
* Individuals and entities engaged in unlicensed virtual asset activities or non-compliance face severe penalties.
* Includes imprisonment of not less than one year.
* Fines ranging between $70,500 and $141,000.
* Authorities are empowered to shut down unlicensed entities.
* Taxation:
* As of June 2025, no finalized crypto-specific tax laws.
* Transactions may fall under existing capital gains or corporate tax rules.
* Clearer crypto tax policies are anticipated by 2026.

### 6. Recent Developments or Changes
* Historical Context: Prior to June 2025, the CBJ maintained a conservative, largely prohibitive stance, banning financial institutions from dealing with crypto.
* Regulatory Evolution:
* Follows a proactive government initiative approved by the Cabinet in January 2025.
* Involved consultations with industry stakeholders, CBJ, JSC, and Prime Minister's Office.
* Addressing FATF Concerns: Strategic move to address gaps flagged by the Financial Action Task Force (FATF), which had placed Jordan on its grey list in 2023 due to virtual asset risks.
* Broader Blockchain Strategy: Jordan is advancing its national Blockchain Strategy, approved in late 2024, with full implementation by 2025 to integrate DLT into government services.
* CBDC Research: CBJ is conducting in-depth research into a digital dinar, with trials possible by 2026-2027.
* Market Outlook:
* Expected to boost the crypto market, with projected revenue reaching US$29.4 million in 2025.
* Anticipated user base of 894.75 thousand by 2026.
* Framework modeled after successful regulations in countries like the UAE and Bahrain, aiming to attract foreign investment.

Full Analysis Report

Report on Retail Cryptocurrency Trading Status in Jordan

Date of Report: 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).

Retail_Trading_Status: Allowed-Regulated

1. Identified Current Status: Allowed-Regulated

2. Detailed Narrative Explanation:

Historically, the Central Bank of Jordan (CBJ) maintained a restrictive stance on cryptocurrencies, prohibiting banks, currency exchange companies, financial entities, and payment service providers from facilitating any cryptocurrency transactions. The CBJ also issued warnings to the public regarding the risks associated with cryptocurrency trading, emphasizing that they are not legal tender and highlighting concerns about volatility, financial crime, and lack of consumer protection. Despite these prohibitions on financial institutions, peer-to-peer (P2P) crypto trading continued informally among individuals.

A significant shift occurred in early 2025 with the passing of Law No. 14 of 2025, the “Virtual Assets Transactions Regulation Law.” This law, published in the Official Gazette and set to become effective 90 days after publication, establishes Jordan's first comprehensive legal framework for virtual assets. This development signals a move from a prohibitive stance to a regulated approach towards cryptocurrency activities in the Kingdom.

The new law applies to entities and individuals involved in virtual asset services within Jordan and defines a "Virtual Asset" as “A digital representation of value that can be traded, transferred, or used for payment or investment purposes.” However, it excludes digital securities already regulated by the Jordan Securities Commission (JSC), digital representations of fiat currency issued by the CBJ (like a potential CBDC), and investment funds under separate legislation.

Key activities requiring a license from the Jordan Securities Commission (JSC) under this law include:
* Operating and managing virtual asset platforms.
* Exchanging virtual assets for fiat currency or other crypto assets.
* Transferring virtual assets between accounts or wallets.
* Custodial services and managing tools that enable control over virtual assets.
* Providing financial services for token sales or issuers.

Licensing is mandatory for these activities, and providers must have a registered office in Jordan. Promoting unlicensed virtual asset services is strictly prohibited, with potential penalties including imprisonment of not less than one year and significant fines.

While the law permits various virtual asset-related activities, the use of virtual assets for payment purposes within Jordan requires explicit approval from the Central Bank of Jordan. Financial institutions already regulated by the CBJ must also receive pre-approval before engaging in crypto-related services.

The Jordan Securities Commission is entrusted with licensing, monitoring, and supervising virtual asset service providers (VASPs). This includes ensuring their compliance with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations. VASPs are mandated to segregate client assets, adhere to AML/CTF laws, report suspicious activity, treat virtual asset transfers as cross-border transactions, and collect and retain data on transfers and involved parties. The law aims to align Jordan with international standards, including those set by the Financial Action Task Force (FATF), and foster a secure environment for investors. Jordan was removed from FATF's grey list in October 2023 after making substantial progress in addressing AML/CFT deficiencies, including enhancing risk assessments for virtual assets.

Therefore, while individual citizens and residents will be legally permitted to buy, sell, and hold cryptocurrencies, it must be done through licensed and regulated VASPs that adhere to strict KYC/AML and other compliance obligations. The previous de facto ban or gray zone is being replaced by a formal, regulated system.

3. Specific, Relevant Text Excerpts:

  • Freeman Law (referencing CBJ's historical 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."
  • Central Bank of Jordan (2018 Statement): "CBJ stresses on its policy of banning cryptocurrencies in the Jordanian financial system due to high risks associated with dealing with them on financial institutions and the national economy."
  • Coinfomania (on the new law): "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."
  • Global Crypto Press (on Law No. 14 of 2025): "Jordan has officially passed Law No. 14 of 2025, known as the “Virtual Assets Transactions Regulation Law,” laying the foundation for a regulated virtual asset ecosystem in the Kingdom. The law was issued by His Majesty King Abdullah II Ibn Al Hussein and published in the Official Gazette, marking a significant step in the country's journey toward fintech innovation and compliance with global standards. Effective 90 days after publication, the law provides clear definitions, licensing requirements, and compliance obligations for virtual asset service providers (VASPs), addressing long-standing regulatory gaps in Jordan's digital economy."
  • Global Crypto Press (defining Virtual Asset): "The law defines a Virtual Asset as: “A digital representation of value that can be traded, transferred, or used for payment or investment purposes.” This excludes traditional financial instruments and fiat currencies already regulated by other laws."
  • 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,” the statement explains. Under the new law, the Securities Commission will be entrusted with licensing, monitoring and supervising virtual asset service providers. It is expected to ensure their compliance with relevant anti-money laundering and counter-terrorism finance regulations."
  • Bitcoin.com News (on penalties): "Meanwhile, individuals found to be in violation of the provisions face imprisonment of not less than one year and a fine ranging between $70,500 and $141,000. The law also empowers Jordanian authorities to shut down unlicensed entities."
  • Global Crypto Press (on Central Bank's role in payments): "While the law allows for virtual asset-related activities, payment use within Jordan requires explicit approval from the Central Bank. Financial institutions already regulated by the Central Bank must receive pre-approval before engaging in crypto-related services."
  • LARA on the Block (summarizing the new law's scope): "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."
  • Jordan Times (January 2025, pre-law announcement): "Bino stressed that trading in virtual currencies today in Jordan is prohibited through bank accounts, and through financial services companies licensed by the JSC, stressing that the ban is from the Central Bank of Jordan." This quote highlights the situation before the new law's full effect.
  • FOCAL (on FATF Status): "As of October 27, 2023, Jordan has been removed from the FATF's list of jurisdictions under increased monitoring. The FATF recognized Jordan's substantial progress in addressing previous AML/CFT deficiencies. Key achievements include: Enhanced Risk Assessments: Jordan has completed and shared its risk assessments for legal persons and virtual assets."

4. Direct, Accessible URL Links to Sources:

Disclaimer: This report is based on information available up to the specified date. The regulatory landscape for cryptocurrencies can change rapidly.

Web Sources (14)

Sources discovered via web search grounding

Search queries used (8)
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