From Ban to Regulation: Jordan’s New Era for Virtual Assets
Jordan has enacted its landmark Law No. 14 of 2025 on the Regulation of Virtual Assets, shifting from a full ban to a regulated framework that licenses providers and sets clear rules for safe, compliant digital-asset activities.
Introduction
For nearly a decade, Jordan maintained one of the most restrictive positions on cryptocurrencies in the region. Since 2014, the Central Bank of Jordan (“CBJ”) prohibited regulated financial institutions from engaging in crypto activities, warning the public that digital currencies were neither legal tender nor protected by any governmental authority.
That chapter has now closed. With the issuance of Law No. 14 of 2025 on the Regulation of Virtual Assets (the “Law”), Jordan has shifted from outright prohibition to a supervised, principles-based regulatory framework. This move places the Kingdom alongside regional neighbors such as the UAE and Bahrain in recognizing virtual assets as an area requiring structured oversight rather than blanket bans.
Why Crypto Was Banned
In 2014, the CBJ issued Circular No. (1/1/5/2451), followed by directives in 2018 and 2021, banning all banks, money-exchange companies, and payment service providers from dealing in cryptocurrencies. The decision stemmed from legitimate concerns: extreme price volatility, speculative bubbles, lack of consumer protection, and the risk of money laundering. As a result, Jordan’s financial system remained almost entirely closed to crypto activities for nearly a decade.
What the New Law Changes
The Law, published by the Jordan Securities Commission (“JSC”), introduces for the first time a comprehensive legal regime for “virtual assets.” Under Article 2, virtual assets are defined as digital representations of value that can be traded, transferred, or used for investment or payment purposes. Articles 4-6 now require licensing or authorization for all core activities such as issuance, brokerage, trading facilitation, custody, and transfer. It clearly distinguishes between:
- Virtual assets (now under the JSC),
- Digital securities (already regulated under the Securities Law), and
- Digital or electronic forms of fiat currency (under the CBJ).
This delineation ends years of uncertainty over which regulator is responsible for digital assets.
Who Will Regulate the Sector
The JSC will act as the primary regulator, coordinating closely with the CBJ and other relevant bodies. Licensed providers known internationally as Virtual Asset Service Providers (“VASPs”) must comply with strict obligations, including:
- Anti-Money Laundering (“AML”) / Counter-Terrorism Financing (“CFT”) controls,
- Data protection and consumer-disclosure safeguards, and
- Robust risk-management frameworks.
The JSC is empowered to inspect, suspend, and impose administrative penalties to ensure compliance. These steps bring Jordan in line with global standards set by the Financial Action Task Force (“FATF”), showing the country’s commitment to transparency and safe digital-asset practices. Jordan’s participation in the Egmont Group through its Anti-Money Laundering and Counter Terrorist Financing Unit (“AMLU”) further enables cross-border intelligence sharing on illicit finance.
What This Means for the Market
The shift from ban to regulation is more than a legal milestone; it reshapes opportunities across Jordan’s financial and technology sectors:
- Fintech and Startups:
Can now develop blockchain-based payment solutions, tokenization platforms, and digital-asset services within a licensed environment, reducing regulatory risk and attracting investment. - Banks and Financial Institutions:
May partner with regulated VASPs to explore digital-asset custody, tokenized deposits, and cross-border settlements in compliance with CBJ oversight. - Investors and Consumers:
Gain clearer protection and recourse mechanisms, reducing exposure to fraud or unregulated schemes. - Regulators:
Move from reactive prohibition to proactive supervision balancing innovation with stability and AML enforcement.
Looking Ahead
The coming months will be critical as the JSC issues implementing regulations specifying licensing procedures, capital requirements, and compliance standards. Collaboration with the CBJ will ensure consistency with monetary policy and payment-system integrity. Jordan’s new framework signals not only legal modernization but also a strategic embrace of digital finance. With the right implementation, the Kingdom could position itself as a regional hub for compliant virtual-asset innovation.