Crypto Regulations in Jordan

Shweta Chakrawarty

about 8 hours ago

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 ... Read more

The present rules demand licensing for exchanges while maintaining stringent AML/CFT compliance as part of a regulated market access structure. Challenges include how to integrate decentralized systems and traditional finance and issues surrounding the competition from emerging regional hubs. Future prospects indicate increased institutional adoption with the possibility of Jordan emerging as a gateway for compliant digital assets in the region.

Historical Context

The historical turning of events that shifted Jordan’s orientation towards cryptocurrencies was in 2025. Before that year, the Central Bank of Jordan had always put a very conservative stand concerning cryptocurrencies as it banned banks and financial institutions from dealing with them owing to volatility, fraud, and money laundering risks. Nevertheless, P2P crypto trading has continued informally by persons and companies privately.

The milestone also came with the enactment of Law No. 14 of 2025, which changed the strict prohibition into a structured regulatory model. This has made Jordan align with global trends on fintech and close previous regulatory gaps; thereby, entering the era of controlled innovation in the Kingdom’s digital economy.

Regulatory Framework

Jordan’s Virtual Assets Law introduces a structured approach to cryptocurrency regulation:

Licensing – All crypto providers are required to register with the Jordan Securities Commission.
Scope – Applies to digital assets that are used in payments as investments, but traditional securities are to be excluded from the rules.
Compliance – KYC and have segregation of funds and reporting of suspicious activity.
Enforcement – Imposing heavy fines up to $140,000 and imprisonment were prescribed for those engaged in unlicensed activities.
Implementation – The rules were enacted 90 days after their announcement.

This balanced framework promotes innovation while ensuring market integrity and investor protection.

Jordan’s Crypto Policies

Jordan has established clear cryptocurrency policies under its new Virtual Assets Law:

Legal Status

Cryptocurrencies are now legally recognized (though not official tender).
All crypto services require formal licensing.

Regulatory Approach

Allows regulated crypto businesses to operate.
Maintains restrictions on unlicensed activities.

Key Provisions

Banks can offer crypto services with Central Bank approval.
Exchanges must comply with strict financial regulations.

Policy Shift

Moves from blanket prohibition to controlled legalization.
Aligns with global standards while addressing local concerns.

This framework legalizes crypto within defined parameters, replacing Jordan’s previous ban with measured acceptance.

Jordan’s Way of Boosting Crypto Innovation

In terms of crypto innovation, Jordan is striking a balance between regulatory oversight and support for its development in the fintech sector.

Regulated Sandbox – Allows startups to test blockchain solutions under supervision.
Banking Integration – Permits licensed financial institutions to explore crypto services.
CBDC Research – Central Bank studying digital dinar potential.
Smart Contracts – Recognizes blockchain-based agreements in specific use cases.

Under the government new plans to create an environment that cultivates innovation but firmly maintains financial stability. The government is positioning Jordan as a regulated hub for the development of the blockchain in the region.

Key Challenges and Obstacles

Laxed Regulations: Complications linger only for the regulators and the players.
Market competition: There is stiff competition for investments and talent with the more established crypto hubs (UAE, Bahrain).
Enforcement Gaps: Peer-to-peer (P2P) monitoring isn’t accounted for offshore without license and platforms.
Public Awareness: Raising awareness of risks in a newly regulated market to users.
Integration with Banks: The traditional financial institutions still remain skeptical toward collaborating with crypto firms.
Technology Incentives: Smart contract vulnerabilities and custody arrangements will need continuous scrutiny in this regard.

Jordan must address these challenges to fully realize its crypto ecosystem potential.

Important Rule Changes and What’s Ahead

1. Market Growth & Adoption

Revenue Forecast (2025): $29.4M. A consistent growth will emerge as regulations start to attract investors.
Projected Number of Users: Anticipated to reach 894,750 by 2026s (7.72% penetration).
Institutional Entry: Banks and fintech firms are entering under CBJ oversight, which is increasing liquidity.

2. Regulatory Evolution

Structured Licensing: More VASPs (exchanges, custodians) expected to obtain licenses.
Tax & Compliance: Clearer crypto tax policies likely by 2026.
DeFi & NFT Rules: Potential sandbox programs for decentralized finance.

3. Regional Competition & Positioning

Alternative to UAE/Bahrain: Jordan’s balanced regulations may attract cautious investors.
Fintech Hub Potential: Amman could emerge as a compliance-friendly crypto center.

4. Technology & Infrastructure

CBDC Development: Digital dinar trials possible by 2026-2027.
Banking Integration: Traditional finance slowly embracing crypto services.

Jordan’s crypto market is headed for controlled growth, with regulations unlocking revenue potential while mitigating risks. If adoption trends continue, it could become a key player in MENA’s digital asset economy.

Conclusion

Under the Virtual Assets Transactions Regulation Law (2025), Jordan now upholds its promise of being a thorough innovator in the future of finance, having shifted the marketplace from being restrictive to that which embraces regulation and innovation in the use of digital assets. In legalizing and structuring trading for cryptocurrencies, Jordan has opened new economic avenues and secured the avenues towards security, transparency, and investor protection.

FAQs

1. When did Jordan allow crypto?

Jordan launched its first all-encompassing crypto regulation, Law No. 14 of 2025 (Virtual Assets Transactions Regulation Law). This law came into force after a period of 90 days from its publication in the Official Gazette, signifying the transition of Jordan from prohibitory to regulated adoption.

2. Can foreign investors launch crypto businesses in Jordan under the new law?

The new law allows foreign investments for the setting up of crypto businesses into the Kingdom of Jordan. However, they must be established locally, and the investors are to secure licensing from JSC. The law itself opens doors to foreign investment, but compliance with the Jordanian AML/CFT framework is prioritized.

3. How does Jordan’s crypto tax framework compare to regional neighbors?

Jordan has not yet finalized crypto-specific tax laws, but transactions may fall under capital gains or corporate tax rules. This contrasts with UAE’s tax-free zones and Bahrain’s clearer crypto tax guidelines.

4. Does the law address stablecoins or only volatile cryptocurrencies?

It covers all virtual assets, including stablecoins, but their use for payments requires explicit Central Bank approval under separate financial regulations.

5. Can Jordanian banks now custody crypto assets for clients?

Only with CBJ approval, as traditional banks must undergo strict reviews before offering crypto-related services, unlike dedicated licensed VASPs.

6. How does Jordan’s approach differ from Saudi Arabia’s crypto ban?

Jordan supported legalized regulation; Saudi Arabia maintained an outright ban. Jordan’s model is more progressive in the sense of Bahrain, with tighter banking controls.