In 2025, Jordan marked a decisive shift in its approach to cryptocurrencies, moving from effective prohibition to formal regulation. With the enactment of Law No. 14 of 2025 on Regulating Virtual Assets, the Kingdom introduced a clear legal framework that replaces uncertainty with supervised market entry. While the core structure is now in place, certain operational details, such as regulatory fees and bank guarantee requirements, are expected to be clarified through implementing instructions.
The new law defines virtual assets as digital representations of value traded electronically, while expressly excluding central bank digital currency and conventional e-money. Oversight is divided between regulators: the Jordan Securities Commission (JSC) licenses and supervises Virtual Asset Service Providers (VASPs), while the Central Bank of Jordan (CBJ) retains authority over payment systems and any crypto-related use within them.
From Prohibition to Regulation
For years, Jordan maintained a cautious stance toward cryptocurrencies. In 2014, the CBJ instructed banks and exchange houses to avoid crypto-related activity, citing volatility and AML/CFT risks. This policy remained in effect until 2025, when Law No. 14 was published in the Official Gazette, signaling a fundamental policy reversal.
Under the new regime, the JSC becomes the sole licensing authority for VASPs, with the power to classify virtual-asset activities and issue detailed regulatory instructions. In parallel, the CBJ continues to regulate state-issued digital currency and payment infrastructure. This division of responsibilities brings long-awaited clarity to Jordan’s financial regulatory landscape and aligns crypto oversight with existing capital markets and banking frameworks.
Licensing Framework and Market Entry
The Law is complemented by Regulation No. 94 of 2025, which sets out the licensing process in detail. Applicants must be either Jordanian-registered companies or authorized branches of foreign entities, with corporate activities strictly limited to approved virtual-asset services.
The licensing process is sequential and often underestimated. Companies must first obtain JSC approval for their corporate purpose and structure before incorporation or amendment with the Companies Control Department. Only after incorporation can a formal license application be submitted. Even once licensed, a separate written working permit from the JSC is required before operations may commence.
Together, the Law and Regulation establish a controlled but comprehensive framework aimed at investor protection, market integrity, and regulatory transparency. Jordan now joins regional peers such as the UAE and Bahrain in recognizing virtual assets as a legitimate, regulated financial activity.
Key Challenges for Market Participants
While the framework creates opportunity, it also presents meaningful hurdles.
Licensing complexity is a primary challenge. Applicants must navigate multiple approvals, detailed documentation requirements, and regulatory vetting of ownership and management. Although Jordanian law allows 100% foreign ownership, in practice, regulators often expect some level of local participation.
Capital requirements are another critical factor. Minimum paid-in capital thresholds are high by regional standards, 3 million JDs ($4.2 million) for exchange activities and 2 million JDs for custody services. Where a firm seeks to conduct multiple regulated activities, capital requirements may apply cumulatively.
Operationally, exchange and custody activities are closely linked. Even platforms that do not intend to hold client assets must contract with a licensed local custodian, making custody arrangements unavoidable in practice.
Finally, banking access remains cautious. Although the historic crypto ban has been lifted, banks remain risk-averse. Any institution wishing to integrate crypto services must obtain CBJ approval, and licensed VASPs must demonstrate robust AML/KYC compliance to secure fiat on-ramps. Importantly, the law prohibits any unlicensed person from offering or promoting virtual-asset services, with significant penalties for violations.
Alignment with International Standards
Jordan’s framework is deliberately aligned with global best practices. It closely reflects FATF guidance on virtual assets and adopts a familiar regulatory split between capital markets supervision and central bank oversight.
Regulatory innovation is also evident through the CBJ’s JoRegBox FinTech sandbox, which allows fintech firms and VASPs to test products in a controlled environment. Sandboxes are now a hallmark of modern financial regulation, and JoRegBox places Jordan alongside jurisdictions such as Singapore and Dubai in encouraging responsible innovation.
Regional and international observers have described Jordan’s approach as balanced—neither a rigid ban nor an unregulated free-for-all, but a supervised framework that encourages innovation while managing risk.
Practical Takeaways
For businesses considering entry into Jordan’s virtual-asset market, compliance must be treated as a core business function, not an afterthought. Key priorities include:
- Structuring a Jordanian entity with a compliant corporate purpose and early JSC engagement
- Implementing a full AML and compliance program aligned with Jordanian law and FATF standards
- Allocating required capital from the outset
- Engaging early with local banks and regulators to secure operational continuity
Regulatory fees, bank guarantees, and additional compliance obligations are expected to be clarified through forthcoming guidance and should be factored into early financial planning.
Looking Ahead
Jordan’s virtual-asset regime forms part of a broader national push toward digital transformation under its Economic Modernization Vision and National Digital Transformation Strategy. Authorities have emphasized that the framework aims to attract fintech investment and position Jordan as a regional hub for digital assets, AI, and blockchain technology.
International partnerships reinforce this trajectory. In 2025, the EU and Jordan launched a 3 billion euros strategic partnership through 2027, underscoring confidence in Jordan’s reform agenda and economic resilience. Strong regulation and AML compliance enhance Jordan’s appeal as a gateway for regional and international fintech investment.
Conclusion
Jordan’s transition from prohibition to regulation represents a significant leap in regulatory maturity. By providing clarity, safeguards, and a structured path to market entry, the Kingdom has transformed crypto from a prohibited risk into a regulated opportunity. For serious investors and technology innovators, Jordan now offers a clear—if demanding—framework for participation in the digital-asset economy.