Hashemite Kingdom of Jordan 2025 Virtual Assets Law Crypto

What is the new legal framework for virtual assets in Jordan?

The new legal framework for virtual assets in Jordan is built around the Virtual Assets Dealing Law No. 14 of 2025, which moves the market from prohibition to regulation. The Law introduces a licensing system for virtual asset service providers, sets AML and consumer-protection standards, and integrates virtual assets into the wider banking and finance regulatory architecture.

The Law reflects global trends, especially the Financial Action Task Force (FATF) standards on virtual assets and VASPs. It does not make crypto "legal tender," but it does create a structured way for businesses to operate in or from Jordan, subject to regulatory oversight.

Key pillars of the Virtual Assets Dealing Law No. 14 of 2025

• Scope of "virtual assets": Typically covers digital representations of value that can be traded or transferred electronically, used for payment or investment, and that are not already covered as fiat currency or traditional securities. Exact definitions are set in the Law and secondary regulations.
• Licensing of VASPs: Any person or entity that provides exchange, transfer, custody, brokerage, or similar services in virtual assets on a commercial basis will require a license.
• Regulatory authority: The Law assigns licensing and supervision to one or more "competent authorities" designated by the government. In practice, this is expected to involve the Central Bank of Jordan for payment and exchange activities, and the Jordan Securities Commission for tokenized securities, with coordination between them.
• AML/CFT integration: VASPs are brought squarely under the Anti-Money Laundering and Counter Terrorist Financing Law and must implement customer due diligence, transaction monitoring, and reporting obligations to the national Financial Intelligence Unit.
• Sanctions and penalties: The Law introduces administrative and criminal penalties for operating without a license, breaching AML obligations, or harming clients through fraud or gross negligence.

How did Jordan move from a Central Bank crypto ban to a licensing regime?

Jordan moved from an effective Central Bank ban to a licensing regime by keeping the earlier warnings in place but replacing blanket prohibition with the Virtual Assets Dealing Law No. 14 of 2025. The Central Bank's past circulars discouraged or restricted banks and payment institutions from dealing in crypto, but the new Law creates a path for regulated participation under clear conditions.

This shift reflects both risk concerns and competitive pressure in the region, as neighboring jurisdictions opened regulated crypto and fintech markets. The new framework aims to protect the banking system and consumers while attracting responsible fintech and Web3 investment.

Timeline of the regulatory shift

• Pre-2025: CBJ issued circulars warning against dealing in cryptocurrencies and prohibiting licensed financial institutions from processing crypto-related transactions. Crypto dealings by individuals were at their own risk and outside the formal system.
• Policy debate: As regional hubs in the Gulf and elsewhere launched virtual asset regimes, Jordanian policymakers examined how to balance innovation with AML and financial stability concerns.
• 2025 - Law 14 enacted: The Virtual Assets Dealing Law No. 14 of 2025 was promulgated, formally recognizing virtual assets as a regulated activity and providing for licensing, supervision, and enforcement.
• Implementation phase: Secondary regulations, instructions, and circulars are phased in, clarifying who licenses what, prudential rules, and how banks can onboard VASPs and their clients.

What has not changed?

• No legal tender status: The Jordanian dinar remains the only legal tender. Merchants are not obliged to accept virtual assets as payment.
• High AML sensitivity: Authorities still prioritize AML/CFT risk. Anonymous or privacy-enhancing features will attract special scrutiny.
• Bank conservatism: Many banks will remain cautious and may only work with well-governed, fully licensed virtual asset businesses.

Who regulates virtual assets in Jordan and how do they interact with the banking system?

Virtual assets in Jordan are regulated under Law 14 of 2025 by one or more "competent authorities" designated by the government, acting alongside the Central Bank of Jordan and other financial regulators. In practice, CBJ continues to supervise banks and payment institutions, while the designated authority licenses VASPs and coordinates closely on AML, consumer protection, and systemic risk.

This creates a layered system: VASPs need their own license, banks remain regulated by CBJ, and any interaction between the two must comply with both sets of rules. Banks will typically rely on regulatory clearance and due diligence before offering services to VASPs.

Main public bodies involved

• Central Bank of Jordan (CBJ): Regulates banks, payment service providers, and e-money institutions; issues instructions on how they may deal with virtual assets and VASPs.
• Competent virtual asset authority: Designated under Law 14 to license, supervise, and sanction virtual asset service providers. Its detailed mandate is set by secondary legislation and government decisions.
• Jordan Securities Commission (JSC): Continues to regulate securities, investment funds, and public offerings. Security tokens or tokenized shares may fall under its jurisdiction, even if issued on a blockchain.
• Anti-Money Laundering / CFT Unit: Receives suspicious transaction reports, oversees AML compliance, and coordinates with CBJ and the virtual asset authority.

Interaction with the banking sector

• Onboarding of VASPs: Banks may open accounts and provide services to licensed VASPs, subject to CBJ instructions and their own risk appetite.
• Restrictions for unlicensed entities: Banks are likely to refuse services to unlicensed exchanges, OTC desks, or brokers operating from or into Jordan.
• Monitoring of flows: Larger inbound or outbound transfers to foreign crypto platforms may trigger enhanced due diligence or requests for supporting documentation.
• Settlement and custody: Custody of fiat funds for VASPs, escrow arrangements, and settlement accounts will be closely supervised by CBJ.

What activities require a virtual asset license in Jordan?

In Jordan, any business that professionally deals in, intermediates, or safeguards virtual assets will generally require a license under the Virtual Assets Dealing Law No. 14 of 2025. Occasional personal trading on your own account is not the same as running a virtual asset business, but repeated or organized activity can quickly cross the line into a regulated service.

The Law aims to capture "virtual asset service providers" in line with FATF standards, not casual users. If you earn revenue, hold client assets, or market virtual asset services to the public, you should assume you may fall within the licensing net.

Typical activities likely to require a license

• Operating a crypto exchange: Platforms that match buy and sell orders for crypto-to-crypto or crypto-to-fiat trades for others.
• Brokerage and dealing services: Businesses that buy or sell virtual assets for clients, including OTC desks and market makers.
• Custody and wallet services: Safekeeping of private keys, hosted wallet services, and institutional custody solutions.
• Transfer and payment services: Facilitating the transfer of virtual assets on behalf of others, including remittance-like services.
• ICO/ITO/Token offering platforms: Platforms that organize or market token sales to the public, especially if they hold client funds or tokens.
• Advisory and portfolio management in virtual assets: If advice or management is offered professionally and clients entrust assets or execution authority.

Borderline or exempt activities

• Own-account investing: Buying and holding crypto on your own balance sheet, without serving clients, is closer to an investment activity and may not by itself require a VASP license, though other licensing regimes may apply.
• Technology-only providers: Pure software vendors that do not touch client assets may be outside the virtual asset license perimeter, but they must be careful not to assume or advertise custody or intermediary roles.
• Mining or validation: Operating nodes or mining rigs, without providing services to clients, will typically not be regulated as a VASP activity, but proceeds may still trigger tax and AML obligations.

What are the core licensing requirements for crypto-businesses in Jordan?

Crypto-businesses in Jordan must obtain a virtual asset service provider license and meet requirements on capital, governance, AML/CFT, technology, and consumer protection. The exact thresholds will be set by regulations, but they generally mirror bank-like expectations for entities handling client value.

Regulators will look for serious local substance, strong compliance cultures, and transparent ownership. Shell or lightly capitalized operators are unlikely to be approved.

1. Corporate and ownership requirements

• Local incorporation: Applicants typically must be incorporated in Jordan (or in a designated financial zone) and have a registered office in the country.
• Fit-and-proper owners: Major shareholders and beneficial owners must pass integrity and financial soundness checks, including criminal record and bankruptcy checks.
• Board and management: Directors and senior executives must demonstrate relevant experience in finance, compliance, technology, or risk management.

2. Capital and financial soundness

• Minimum paid-up capital: The Law expects minimum capital thresholds, which may vary by business model (exchange vs custody vs advisory). These thresholds are set by the regulator and are generally calibrated to cover operational and risk exposures.
• Ongoing capital ratios: Licensed VASPs may need to maintain a minimum capital adequacy or liquidity buffer and notify the regulator if they fall below certain triggers.
• Segregation of client assets: Client fiat and crypto assets must be segregated from the VASP's own assets and protected from the firm's creditors.

3. AML/CFT and sanctions compliance

• Customer due diligence (CDD): VASPs must collect and verify client identities, understand the purpose of the relationship, and apply enhanced due diligence for high-risk clients.
• Transaction monitoring: Systems must identify suspicious patterns, large or unusual transactions, and interactions with high-risk jurisdictions.
• Travel Rule compliance: For larger transfers between VASPs, the originator and beneficiary information must accompany the transfer, in line with FATF's Travel Rule.
• Reporting obligations: Suspicious transaction reports and threshold cash/virtual asset reports must be filed with the designated AML authority.

4. Technology, cybersecurity, and operational risk

• Secure architecture: Cold and hot wallet management, multi-signature controls, and key management standards must be documented and independently tested.
• Business continuity: Disaster recovery, backup sites, and incident response plans are required.
• Cybersecurity testing: Regular penetration testing and vulnerability assessments by qualified third parties are expected.
• Outsourcing oversight: Cloud or IT outsourcing providers must be vetted, and key-service contracts must allow regulator access and audits.

5. Consumer protection and conduct of business

• Client disclosures: Clear, plain-language risk disclosures on volatility, loss of keys, hacking risks, and regulatory status must be provided.
• Complaints handling: A structured process and dedicated contact point for client complaints is required.
• Marketing rules: Promotions must be fair and not misleading. Promising guaranteed returns on crypto investments is likely prohibited or heavily restricted.
• Recordkeeping: Comprehensive records of orders, trades, communications, and client files must be kept for a minimum retention period set by law.

How are personal peer-to-peer crypto transactions treated under Jordanian law?

Personal, non-commercial peer-to-peer (P2P) crypto trading between individuals is treated differently from operating a business, but it is not completely outside the legal framework. Law 14 of 2025 targets commercial virtual asset services, yet individuals still face potential tax, AML, and banking implications when they trade on their own account.

The dividing line is whether you are habitually in the business of facilitating trades or holding assets for others. Once you start acting like a platform, broker, or dealer, licensing obligations can apply even if you label yourself as "P2P."

What individuals can generally do

• Buy and hold on foreign exchanges: Residents may open accounts with foreign platforms that accept them, subject to those platforms' KYC and local banking rules.
• P2P trades with acquaintances: Occasional sales or purchases with friends or acquaintances, using your own assets and accounts, is unlikely to be treated as a regulated business activity by itself.
• Invest for own account: Treating crypto like any other speculative asset in your personal portfolio is generally permissible, though risky.

Where P2P activity becomes a business

• Running informal OTC desks: Regularly arranging buy/sell deals for others, taking a margin or commission, and using your accounts to move funds is likely to be viewed as unlicensed exchange or brokerage.
• Acting as a "local dealer": Advertising locally that you can buy or sell crypto in cash or bank transfer for a spread suggests a commercial activity.
• Pool or fund-like structures: Taking money from others to invest in crypto on their behalf can trigger investment management and VASP rules.

Risks for individuals even outside licensing

• Banking risk: Banks may question or block incoming or outgoing transfers linked to foreign exchanges, especially large or frequent ones, and may ask for proof of source of funds.
• Tax considerations: Capital gains or trading profits may be taxable under the Income Tax Law, depending on their nature and frequency; professional trading income is more likely to be taxed.
• AML scrutiny: Large cash or cross-border flows can trigger reporting obligations or investigations, even if no VASP license is required.

How does Jordan's banking and finance regulation interact with virtual assets?

Jordan's banking and finance regulation interacts with virtual assets mainly through AML/CFT, prudential supervision of banks, and payment system rules. Law 14 of 2025 does not operate in isolation; it sits on top of, and is limited by, the existing Central Bank and securities laws.

Banks remain responsible for managing risks from crypto-related activities, and they will adopt conservative policies until regulatory expectations become clearer through CBJ instructions and supervisory practice.

Key intersecting laws and regimes

• Central Bank Law and CBJ regulations: Define what banks and payment institutions may or may not do with virtual assets and VASPs.
• Anti-Money Laundering and CFT Law: Applies to both banks and VASPs, requiring robust CDD, monitoring, and reporting for crypto-related transactions.
• Electronic Payments and Transfers regulations: Govern how fiat payment rails interface with VASPs and foreign exchanges.
• Securities Law: Applies to tokenized securities, security token offerings, and digital investment platforms, sometimes alongside the virtual assets regime.

Practical implications for banks and VASPs

• Bank accounts for VASPs: A VASP license will not guarantee a bank account, but it will be a minimum requirement. Banks will also review business models, AML frameworks, and ownership.
• Client payments to exchanges: CBJ may require banks to categorize and monitor transfers to foreign exchanges, and they might cap, delay, or question certain flows.
• Custody and collateral: Banks usually cannot take direct custody of clients' virtual assets without specific permission, but they may accept exposures to licensed custodians or use structured arrangements.
• Stablecoins and on-chain settlements: Use of stablecoins for cross-border payments will attract careful scrutiny, especially if it bypasses traditional correspondent banking channels.

What are typical costs and timelines for obtaining a virtual asset license in Jordan?

Typical timelines for obtaining a virtual asset license in Jordan will likely range from 3 to 9 months from a complete application, depending on complexity and regulatory capacity. Costs are driven less by official fees and more by legal, compliance, and technology setup, often totaling tens or hundreds of thousands of Jordanian dinars for serious platforms.

The Law 14/2025 fee schedule and granular timelines are set in secondary regulations, which may evolve, so businesses should plan with conservative assumptions and budget buffers.

Indicative cost and timeline breakdown (non-official, market-based estimates)

Typical licensing process steps

1. Pre-feasibility and structure: Decide the business model (exchange, brokerage, custody), legal entity, and shareholder structure.
2. Regulatory engagement: Hold preliminary meetings or submit concept papers to the regulator to test appetite and expectations.
3. Documentation preparation: Draft business plan, policies, AML framework, technology description, security architecture, and governance documents.
4. Formal application submission: File the application with supporting documents and pay the required fee.
5. Regulator Q&A and revisions: Respond to questions, provide clarifications, and adjust policies or structure as requested.
6. Conditional approval: Receive approval subject to final conditions such as capital injection, key hires, or IT tests.
7. Operational readiness review: Demonstrate that systems, staff, and controls are in place.
8. License issuance: Obtain the formal license and commence operations under supervision.

What practical compliance steps should crypto and fintech businesses take in Jordan?

Crypto and fintech businesses should start compliance planning early, treating licensing as a strategic project rather than a formality. Building a credible compliance and risk management capability is essential for both regulatory approval and banking relationships.

Investors and partners will also look at your compliance posture as a key indicator of long-term viability in the Jordanian market.

Strategic planning

• Confirm whether your planned activities fall within the scope of a VASP license or another license (payments, securities, crowdfunding).
• Decide where to house intellectual property and group-level functions, balancing Jordanian substance requirements with regional expansion plans.
• Map your target customers (Jordanian retail, regional HNWIs, institutions) and tailor compliance intensity to their risk profile.

Governance and staffing

• Appoint a board with at least one member experienced in regulated financial services or risk management.
• Hire or designate a Money Laundering Reporting Officer (MLRO) resident in Jordan, with a clear reporting line to the board.
• Set up an internal audit or independent review function, even if outsourced, to test controls regularly.

Policies, controls, and documentation

• Prepare a detailed AML/CFT policy aligned with Jordanian law, covering CDD, EDD, screening, monitoring, and reporting.
• Draft risk management, operational, cybersecurity, and outsourcing policies that reflect your actual business not a generic template.
• Design customer terms of business that clearly allocate responsibilities and address dispute resolution and governing law.

Technology and data

• Ensure your platform can support risk-based KYC, including document capture, screening, and ongoing monitoring.
• Implement on-chain analytics where appropriate to assess transaction risk and support suspicious activity decisions.
• Store data in a way that satisfies local data retention and access requirements, with clear incident response procedures.

Banking and partnerships

• Engage early with potential banking partners; share your draft policies and business plan to build comfort.
• Consider relationships with regulated custodians, liquidity providers, and compliance vendors to strengthen your application.
• Align your marketing strategies with what regulators and banks will consider acceptable for retail exposure.

When should you hire a Jordanian banking and finance lawyer or expert for virtual assets?

You should hire a Jordanian banking and finance lawyer or expert as soon as you are serious about launching or scaling a virtual asset business that touches Jordan. Early advice can prevent you from structuring the business in a way that is unlicensable or unattractive to regulators and banks.

Even individuals with significant crypto holdings or complex P2P activity may benefit from targeted advice on tax, AML, and banking risk.

Situations where expert help is strongly recommended

• Launching an exchange, brokerage, or wallet service: To assess licensing needs, choose the right entity structure, and prepare the application.
• Offering tokens to Jordanian investors: To determine whether tokens are securities, collective investment schemes, or virtual assets, and which regulator is in charge.
• Building a cross-border platform: To understand how Jordanian rules apply to foreign operators serving Jordanian clients or operating from Jordan.
• Dealing with regulatory inquiries or bank de-risking: To respond effectively if a bank questions your transactions or a regulator sends information requests.
• Tax and accounting planning: To classify crypto holdings, staking income, and trading profits appropriately under Jordanian law and practice.

What a good advisor will typically provide

• A clear mapping of your activities against Jordanian licensing regimes (virtual assets, banking, payments, securities).
• Practical insight on how the regulator and banks interpret Law 14/2025 in real cases, not just on paper.
• Support in drafting policies, agreements, and disclosures that satisfy regulatory expectations while remaining commercially workable.
• Introductions to other key experts, such as auditors, tax advisers, cybersecurity firms, and compliance technology providers.

What are the next steps for businesses and individuals interested in virtual assets in Jordan?

The next steps depend on whether you are a business planning to operate in the virtual assets space or an individual managing personal exposure. In both cases, you should assume a more formal regulatory environment after Law 14 of 2025 and adjust your decisions accordingly.

For businesses and startups

1. Clarify your business model: Write a short, concrete description of what you will do, who your clients are, and where you will operate.
2. Get a regulatory assessment: Engage a local expert to confirm which licenses you need and what realistically can be approved.
3. Build a compliance roadmap: Set milestones for hiring key staff, drafting policies, building tech, and preparing the license file.
4. Engage with regulators and banks: Seek informal feedback through pre-application meetings and explore potential banking partners.
5. Plan capital and funding: Ensure you have sufficient paid-up capital and runway to cover both regulatory and operational costs.

For individuals and high-net-worth investors

1. Review your current holdings and platforms: Understand where your crypto is held, what jurisdictions apply, and what KYC you have passed.
2. Assess banking exposure: Avoid using personal bank accounts as de facto business accounts for repeated P2P trades or third-party flows.
3. Consider tax implications: Speak to a tax adviser if your crypto activity is frequent or sizable to avoid unexpected liabilities.
4. Monitor regulatory updates: Follow CBJ and the designated virtual asset authority for new circulars and guidance affecting P2P and on-ramp/off-ramp options.

For both businesses and individuals, treating virtual assets as part of the formal financial system in Jordan, rather than as a gray-area side activity, will align you with the direction of Law 14 of 2025 and reduce long-term legal and banking risks.