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Jordan

Retail_Trading_Status

Allowed-Regulated High Confidence
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Status Changed

Previous status: Gray-Zone

Reconciled from live analysis after human review confirmed status as Allowed-Regulated. Original new analysis incorrectly classified as Gray-Zone due to focusing on transitional implementation delays, but the legal framework under Law No. 14 of 2025 is active and establishes a regulated environment, making retail trading permitted through licensed VASPs.

Analysis ID
#854
Version
Latest
Created
2025-12-13 07:08
Workflow Stage
Reconciled

Executive Summary

As of December 2025, Jordan has transitioned from a largely prohibitive stance on retail cryptocurrency trading to an 'Allowed-Regulated' environment under Law No. 14 of 2025, the Virtual Assets Transactions Regulation Law. This law, which became effective on September 14, 2025, establishes a comprehensive legal framework for virtual assets, enabling residents to trade cryptocurrencies through licensed Virtual Asset Service Providers (VASPs) supervised by the Jordan Securities Commission (JSC). The Central Bank of Jordan (CBJ) retains authority over payment-related aspects. Although the necessary licensing regulations were approved in draft form by the Cabinet in October 2025 and no licenses have been issued yet, the legal framework is active, marking a definitive shift to a regulated regime with strict AML/CFT compliance, consumer protection, and penalties for unlicensed activities.

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, transferring assets, providing custodial services, and offering financial services for token sales. Unlicensed activities are prohibited and subject to severe penalties.
  • Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) Compliance: Licensed VASPs must adhere to stringent AML/CFT requirements, including Know-Your-Customer (KYC) protocols, client asset segregation, and reporting suspicious activities to the Anti-Money Laundering and Counter Terrorist Financing Unit (AMLU).
  • Consumer Protection: The framework prioritizes investor protection through asset segregation and transparency measures.
  • Regulatory Oversight: The JSC is the primary licensing and supervisory authority for VASPs, while the CBJ oversees payment-related crypto activities and banking interactions, with the historical banking ban expected to be lifted for licensed VASPs by end of 2025.
  • Transitional Implementation: The law is effective, but licensing regulations are in draft as of October 2025, with licenses pending issuance, indicating a transitional phase towards full operational status.

Landmark Laws

  • Law No. 14 of 2025: The Virtual Assets Transactions Regulation Law - Enacted in December 2025, became effective on September 14, 2025. This law establishes Jordan's first comprehensive legal framework for virtual assets, defining them as digital representations of value for trading, transfer, payment, or investment, and mandates licensing for VASPs under JSC supervision. [Source: Global Crypto Press, Bitcoin.com News]
  • Central Bank of Jordan Circulars (Historical) - Circulars such as No. 10/1/2014, enacted February 20, 2014, prohibited banks and financial institutions from dealing in cryptocurrencies. These are being superseded by the 2025 law to allow banking services for licensed VASPs. [Source: CBJ website]
  • Licensing System for Virtual Asset Service Providers (Draft) - Draft regulations approved by the Cabinet in October 2025, detailing capital requirements, fees, and technical standards for VASP licenses, expected to be issued formally by year-end 2025. [Source: Petra.gov.jo]

Considerations

  • Asset Classification: Virtual assets are defined but exclude digital securities, CBDCs, and regulated investment funds; cryptocurrencies are not legal tender.
  • Taxation: Crypto-specific tax laws are not finalized as of December 2025, with clarity expected by 2026; transactions may fall under existing capital gains or corporate tax rules.
  • Payment Use: Using virtual assets for payments within Jordan requires explicit approval from the Central Bank of Jordan.
  • Penalties for Non-Compliance: Unlicensed activities face imprisonment of not less than one year and fines ranging between $70,500 and $141,000, with authorities empowered to shut down unlicensed entities.
  • Transitional Status: Although the law is effective, no VASP licenses have been issued as of October 2025, making legal local trading channels operationally restricted until licenses are granted, expected by end of 2025.

Notes

  • Historical Context: Prior to December 2025, the CBJ maintained a prohibitive stance, banning financial institutions from crypto dealings, though peer-to-peer trading continued informally.
  • Regulatory Evolution: The 2025 law follows a government initiative approved in January 2025 to establish a regulatory framework within one year, involving consultations with the CBJ, JSC, and industry stakeholders.
  • Addressing FATF Concerns: The shift aims to address gaps flagged by FATF, which had placed Jordan on its grey list in 2023; Jordan was removed in October 2023 after progress in AML/CFT measures.
  • Blockchain Strategy: Jordan is advancing a national Blockchain Strategy approved in late 2024 for full implementation by 2025, integrating blockchain into governmental services.
  • CBDC Research: The CBJ is researching a Central Bank Digital Currency (CBDC), with trials possible by 2026-2027.
  • Market Outlook: The regulations are expected to boost crypto revenue and user base, positioning Amman as a compliance-friendly crypto hub.
  • Temporary Implementation Phase: The 'Allowed-Regulated' status is confirmed by the enacted law, but the market is in a pending implementation phase with licenses expected soon, not a gray zone.

Remaining Uncertainties

  • Exact date when the first VASP license will be issued and operational.
  • Specifics of the new CBJ instructions regarding bank accounts for crypto companies.
  • Taxation framework for retail crypto gains under the new law.

Detailed Explanation

As of December 2025, Jordan has definitively transitioned to an 'Allowed-Regulated' status for cryptocurrency activities. This shift is anchored by the enactment of Law No. 14 of 2025, the Virtual Assets Transactions Regulation Law, which became effective on September 14, 2025. This landmark legislation establishes Jordan's first comprehensive legal framework for virtual assets, defined as digital representations of value used for trading, transfer, payment, or investment. The law mandates that all Virtual Asset Service Providers (VASPs), including exchanges and custodians, must obtain a license from the Jordan Securities Commission (JSC) to operate legally. Unlicensed activities are strictly prohibited and subject to severe penalties, including imprisonment of not less than one year and fines ranging from $70,500 to $141,000. The Central Bank of Jordan (CBJ) retains oversight of payment-related crypto activities and is expected to lift its historical banking ban for licensed VASPs by the end of 2025, superseding its restrictive circulars like No. 10/1/2014.

The regulatory framework prioritizes strict Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) compliance and consumer protection. Licensed VASPs must adhere to stringent requirements, including Know-Your-Customer (KYC) protocols, client asset segregation, and reporting suspicious activities to the Anti-Money Laundering and Counter Terrorist Financing Unit (AMLU). The JSC serves as the primary licensing and supervisory authority for VASPs, while the CBJ oversees payment aspects. As of October 2025, the market is in a transitional implementation phase; the necessary licensing regulations detailing capital and technical standards were approved in draft form by the Cabinet, but no VASP licenses have been issued yet, with formal issuance expected by year-end 2025. Consequently, while the legal framework is active, operational local trading channels remain restricted until licenses are granted.

Important restrictions and considerations remain in place. Virtual assets, including cryptocurrencies, are not legal tender in Jordan, and their use for payments requires explicit prior approval from the CBJ. The legal definition of virtual assets explicitly excludes digital securities, Central Bank Digital Currencies (CBDCs), and regulated investment funds. Crypto-specific tax laws were not finalized as of December 2025, with clarity anticipated by 2026, meaning transactions may currently fall under existing capital gains or corporate tax rules. This regulatory evolution follows a government initiative approved in January 2025 and aims to address previous gaps flagged by the Financial Action Task Force (FATF), aligning with Jordan's broader national Blockchain Strategy and ongoing CBDC research by the CBJ.

Summary Points

I. Regulatory Status
* Jordan's status is Allowed-Regulated as of December 2025.
* The transition is based on the effective Law No. 14 of 2025 (Virtual Assets Transactions Regulation Law), enacted in December 2025 and effective from September 14, 2025.
* The market is in a transitional implementation phase; the legal framework is active, but no Virtual Asset Service Provider (VASP) licenses have been issued as of October 2025.

II. Key Regulatory Bodies
* Jordan Securities Commission (JSC): The primary licensing and supervisory authority for all Virtual Asset Service Providers (VASPs).
* Central Bank of Jordan (CBJ): Oversees payment-related crypto activities and banking interactions. Its historical banking ban is expected to be lifted for licensed VASPs by end of 2025.
* Anti-Money Laundering and Counter Terrorist Financing Unit (AMLU): The entity to which suspicious activities must be reported by licensed VASPs.

III. Important Legislation
* Law No. 14 of 2025 (Virtual Assets Transactions Regulation Law): The foundational law establishing the comprehensive legal framework, defining virtual assets, and mandating VASP licensing.
* Central Bank of Jordan Circulars (Historical): Circulars such as No. 10/1/2014 (from February 20, 2014) prohibited banks from dealing in cryptocurrencies. These are being superseded by the 2025 law.
* Licensing System for Virtual Asset Service Providers (Draft): Draft regulations approved by the Cabinet in October 2025, detailing license requirements. Formal issuance is expected by year-end 2025.

IV. Compliance Requirements
* Licensing: All VASPs (exchanges, custodians, etc.) must obtain a license from the JSC to operate legally.
* AML/CFT: Licensed VASPs must adhere to stringent requirements, including:
* Know-Your-Customer (KYC) protocols.
* Client asset segregation.
* Reporting suspicious activities to the AMLU.
* Consumer Protection: The framework enforces protections through measures like asset segregation and transparency.

V. Notable Restrictions or Limitations
* Legal Tender: Cryptocurrencies are not legal tender in Jordan.
* Payments: Using virtual assets for payments requires explicit prior approval from the Central Bank of Jordan (CBJ).
* Asset Scope: The legal definition of virtual assets excludes digital securities, CBDCs, and regulated investment funds.
* Unlicensed Activity: Operating without a license is prohibited and carries severe penalties, including imprisonment (not less than one year) and fines ($70,500 to $141,000).
* Taxation: Crypto-specific tax laws are not finalized as of December 2025; transactions may fall under existing capital gains or corporate tax rules.

VI. Recent Developments or Notes
* Regulatory Evolution: The 2025 law follows a government initiative approved in January 2025 to establish a framework within one year.
* FATF Alignment: The shift aims to address gaps previously flagged by the FATF, which had placed Jordan on its grey list (Jordan was removed in October 2023).
* National Strategy: Jordan is advancing a national Blockchain Strategy approved in late 2024 for full implementation by 2025.
* CBDC Research: The CBJ is researching a Central Bank Digital Currency (CBDC), with trials possible by 2026-2027.
* Market Outlook: The regulations are expected to boost the crypto sector and position Amman as a compliance-friendly hub.

Full Analysis Report

Report on Retail Cryptocurrency Trading Status in Jordan

Date of Report: 2025-12-01

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:

Jordan has transitioned from a historically prohibitive stance to a regulated environment for retail cryptocurrency trading with the enactment of Law No. 14 of 2025, the Virtual Assets Transactions Regulation Law. This law, passed in December 2025 and effective from September 14, 2025, establishes a comprehensive legal framework that permits residents to trade cryptocurrencies through licensed Virtual Asset Service Providers (VASPs). Prior to this, the Central Bank of Jordan (CBJ) maintained strict bans on financial institutions dealing with cryptocurrencies, citing risks like volatility and money laundering, which created a gray zone for peer-to-peer trading.

The new law defines a "Virtual Asset" as "a digital representation of value that can be traded, transferred, or used for payment or investment purposes" and mandates that all VASPs—including those operating platforms, exchanging assets, providing custody, or facilitating token sales—must obtain a license from the Jordan Securities Commission (JSC). Unlicensed activities are prohibited and subject to severe penalties, including imprisonment of not less than one year and fines ranging from $70,500 to $141,000. The JSC is responsible for licensing, monitoring, and supervising VASPs, ensuring compliance with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) regulations, such as KYC protocols, client asset segregation, and reporting suspicious activities to the Anti-Money Laundering and Counter Terrorist Financing Unit (AMLU).

While the law is effective, the licensing regulations were approved in draft form by the Cabinet in October 2025, and as of that date, no licenses have been issued. However, the CBJ has indicated that the historical banking ban will be lifted for licensed VASPs by the end of 2025, and the JSC expects to issue licenses soon. This transitional phase does not change the legal status; the framework is in place, making retail trading allowed-regulated once operational through licensed entities. The use of virtual assets for payments requires explicit CBJ approval, and cryptocurrencies are not legal tender. The regulatory shift addresses previous FATF concerns, with Jordan removed from the grey list in October 2023 after enhancing virtual asset risk assessments.

Therefore, individual citizens and residents are legally permitted to buy, sell, and hold cryptocurrencies, but must do so through licensed and regulated VASPs that adhere to strict KYC/AML and other compliance obligations. The environment is no longer a gray zone but a formally regulated system.

3. Specific, Relevant Text Excerpts:

  • 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."
  • 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."
  • JSC Statement (via Petra.gov.jo): "The Jordan Securities Commission (JSC) confirmed on Thursday that the Virtual Asset Service Providers Licensing bill for 2025 is in its final stages and expected to be issued soon."
  • 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."
  • Karajahlaw.com (on law effectiveness): "Law No. 14 of 2025... became effective on September 14th, 2025."

4. Direct, Accessible URL Links to Sources:

  • Global Crypto Press - Jordan Enacts First Legal Framework for Virtual Assets to Boost Financial Innovation (June 18, 2025): https://globalcryptopress.com/2025/06/18/jordan-enacts-first-legal-framework-for-virtual-assets-to-boost-financial-innovation/
  • Bitcoin.com News - Unlicensed Crypto Activity in Jordan Could Soon Carry Jail Time (June 18, 2025): https://news.bitcoin.com/unlicensed-crypto-activity-in-jordan-could-soon-carry-jail-time/
  • Petra.gov.jo - JSC: Regulation for Licensing Virtual Asset Service Providers to Be Issued Soon (October 23, 2025): https://petra.gov.jo/Include/News.aspx?IFID=1&ID=205678
  • Central Bank of Jordan - Central Bank of Jordan unveils its support to the financial technology (FinTech) sector and stresses on the Cryptocurrencies ban (May 30, 2018): https://www.cbj.gov.jo/Pages/viewpage.aspx?pageID=536
  • Karajahlaw.com - Jordan's 2025 Virtual Asset Law: Aligning with UAE's Legal Framework (September 14, 2025): https://www.karajahlaw.com/insights/jordans-2025-virtual-asset-law
  • Freeman Law - Jordan and Cryptocurrency: https://freemanlaw.com/jordan-and-cryptocurrency/
  • Coinfomania - Crypto Regulations in Jordan (June 19, 2025): https://coinfomania.com/crypto-regulations-in-jordan/
  • Jordan Times - Regulating virtual, digital assets strategic choice for state — JSC (January 27, 2025): https://jordantimes.com/news/local/regulating-virtual-digital-assets-strategic-choice-state-%E2%80%94-jsc
  • Bitcoin.com News - Jordan to Lift Crypto Trading Ban, Launch Regulatory Framework by Year-End (December 1, 2025): https://news.bitcoin.com/jordan-to-lift-crypto-trading-ban-launch-regulatory-framework-by-year-end/

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

Source Evidence

Primary and secondary sources cited in this analysis

Global Crypto Press - Jordan Enacts First Legal Framework for Virtual Assets primary
2025-06-18

"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."

Bitcoin.com News - Unlicensed Crypto Activity in Jordan Could Soon Carry Jail Time primary
2025-06-18

"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."

JSC: Regulation for Licensing Virtual Asset Service Providers to Be Issued Soon primary
2025-10-23

"The Jordan Securities Commission (JSC) confirmed on Thursday that the Virtual Asset Service Providers Licensing bill for 2025 is in its final stages and expected to be issued soon."

Central Bank of Jordan Circulars primary
2014-02-20

"Prohibiting banks and financial institutions from dealing in cryptocurrencies."

Karajahlaw.com - Jordan's 2025 Virtual Asset Law: Aligning with UAE's Legal Framework secondary
2025-09-14

"Law No. 14 of 2025... became effective on September 14th, 2025."

Bitcoin.com News - Jordan to Lift Crypto Trading Ban, Launch Regulatory Framework by Year-End secondary
2025-12-01

"Jordan is set to lift its ban on cryptocurrency trading, with the Jordan Securities Commission confirming that a comprehensive digital asset regulatory framework will be ready before the end of the year."

Freeman Law - Jordan and Cryptocurrency secondary
N/A

"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."

Coinfomania - Crypto Regulations in Jordan secondary
2025-06-19

"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."

Jordan Times - Regulating virtual, digital assets strategic choice for state — JSC secondary
2025-01-27

"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."

Web Sources (10)

Sources discovered via web search grounding

Search queries used (8)
  • Jordan virtual asset service provider licensing
  • legal status of cryptocurrency in Jordan for individuals
  • Jordan crypto trading ban retail investors
  • Jordan Securities Commission virtual assets regulation 2024
  • Central Bank of Jordan cryptocurrency circular ban 2024 2025
  • Jordan Law No. 14 of 2025 Virtual Assets text
  • Central Bank of Jordan crypto circular 2025 lift ban
  • Jordan Securities Commission VASP regulations status December 2025
karajahlaw.com

https://www.karajahlaw.com/news-blogs/jordan%E2%80%99s-2025-virtual-asset-law-aligning-uae%E2%80%99s-legal-framework-or-charting-its-own

alkhairattorneys.com

https://alkhairattorneys.com/the-regulating-dealings-in-virtual-assets-no-14-of-2025-jordans-leap-toward-formalizing-the-blockchain-digital-economy

lawzana.com

https://lawzana.com/articles/hashemite-kingdom-of-jordan/hashemite-kingdom-of-jordan-2025-virtual-assets-law-crypto-337

lightspark.com

https://www.lightspark.com/knowledge/is-crypto-legal-in-jordan

unlock-bc.com

https://www.unlock-bc.com/144285/jordan-enacts-first-legal-framework-for-virtual-assets-to-boost-financial-innovation/

phemex.com

https://phemex.com/news/article/jordan-to-end-crypto-trading-ban-introduce-regulations-by-yearend-41305

ua.news

https://ua.news/en/finansi/iordaniia-skasovuie-zaboronu-na-torgivliu-kriptovaliutoiu-ta-rozrobliaie-novu-reguliatornu-sistemu

karajahlaw.com

https://www.karajahlaw.com/news-blogs/jordan%E2%80%99s-2025-virtual-asset-law-aligning-uae%E2%80%99s-legal-framework-or-charting-its-own

petra.gov.jo

https://pstg1.petra.gov.jo/en/news/jsc-regulation-for-licensing-virtual-asset-service-providers-to-be-issued-soon

cleverrobot.com

https://cleverrobot.com/jordan-cracks-down-new-law-targets-unauthorized-crypto-use/

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