Cryptocurrency Comes to Jordan: How Law No. 14 Positions the Kingdom in the Global Digital Economy

4 min 31 sec January 15, 2026 (Edited)

In a much-anticipated shift towards modernizing its financial sector, Jordan has officially enacted Law No. 14 of 2025, the Law Regulating Dealings in Virtual Assets (the “Virtual Assets Law”), published in the Official Gazette on 16 June 2025 (effective 14 September 2025). This sea-change legislation, coupled with its implementing regulations which are in draft form and expected to be published in 2026 (“Draft Regulations”), marks Jordan’s first comprehensive framework governing the virtual asset licensing, supervision and enforcement that positions Jordan at the forefront of regional digital finance.

The Virtual Assets Law defines ‘virtual assets’ as digital representations of value used for trading, transfers, payments, or investments and its scope extends to activities related to the provision of virtual asset services in Jordan or related operations for or on behalf of others, capturing both onshore entities and foreign operators that actively target Jordanian customers. However, two carve-outs apply: (i) digital securities already regulated under securities legislation, and (ii) central bank digital currency or e-money unless the Central Bank of Jordan (“CBJ”) opts in. This approach ensures regulatory clarity without duplicating oversight already exercised under other financial statutes.

Under the Virtual Assets Law, the purpose of a virtual asset service provider (“VASP”) is restricted to conducting virtual asset activities. This exclusivity requirement ensures regulatory focus and prevents diversified business models that may complicate supervision. Institutions already supervised by the CBJ (such as banks and payment institutions) may engage in virtual asset exchange and custody services upon obtaining prior CBJ approval, ensuring consistency with established regulatory frameworks and risk management practices.

Draft Regulations

The Draft Regulations require licensing for four activity categories: (1) platform operator/manager (JOD 1,500,000 minimum capital); (2) custodian (JOD 2,000,000); (3) trading broker (JOD 500,000); and (4) financial services provider for virtual asset offerings (JOD 500,000). Multiple activities require cumulative capital.

Applicants must obtain Jordan Securities Commission (“JSC”) preliminary approval before company registration, after which the applicant submits its final license application. Only private or public joint-stock companies qualify. The JSC must issue a decision on applications within 90 days of complete submission, whether for preliminary approval or a final license application. Fees include a JOD 1,000 non-refundable application fee, a JOD 50,000 one-time licensing fee, a JOD 10,000 annual renewal fee, and a 0.0005% commission on transaction values. VASPs must provide guarantees and securities determined by the JSC based on activity nature and risk level.

The CBJ retains exclusive authority over virtual assets for payment purposes. VASPs cannot facilitate payments unless the CBJ issues authorizing instructions. This has yet to occur.

VASPs are designated ‘notifying entities’ under Jordan’s Anti-Money Laundering and Terrorist Financing Law No. 20 of 2021, requiring customer due diligence, record-keeping, and suspicious transaction reporting.

Key Protections and Prohibitions

Article 12 of the Virtual Assets Law requires VASPs to segregate their own assets from customer assets, promoting market integrity and user confidence. Client assets are insulated from the provider’s creditors in liquidation, insolvency, or enforcement proceedings, and are immune from seizure or mortgage. This statutory ring-fencing represents a significant advancement compared to many jurisdictions that rely solely on contractual segregation.

The Draft Regulations prohibit VASPs from selling, transferring, assigning, borrowing against, pledging, or using virtual assets stored, safeguarded, or held under their control on behalf of clients, except for sales, transfers, or assignments authorized by the client or by written agreement.

Unlicensed activity is criminalized: offenders face one to three years’ imprisonment and fines of JOD 50,000 to JOD 100,000, with compulsory closure of premises and confiscation of equipment.

What Should Businesses Do Now?

For International and Domestic VASPs

Assess Jurisdictional Exposure: Foreign platforms cannot escape regulation: accepting Jordanian Dinar, or marketing to Jordanian residents triggers mandatory JSC licensing regardless of where servers and corporate entities are located. Conduct an urgent review of customer demographics, marketing materials, and service accessibility to determine whether Jordanian licensing applies.

Prepare Comprehensive Documentation: The Draft Regulations require extensive documentation for both preliminary and final license applications, including corporate registration materials, capital verification, UBO details, economic feasibility studies, business plans, AML/CTF/CPF policies, and other detailed information. Applicants should begin assembling this documentation immediately as incomplete applications will be rejected, and applicants will only have thirty working days to remedy deficiencies once notified.

Secure Capital and Corporate Structure: Applicants must be private or joint-stock companies, and the purpose of VASPs is restricted to conducting virtual asset activities. Begin corporate restructuring now to meet these requirements. Budget for minimum capital ranging from JOD 500,000 to JOD 2,000,000 depending on activity type, with cumulative requirements for multiple activities.

For Banks and Financial Institutions

CBJ-supervised institutions should evaluate virtual asset offerings and submit approval requests once CBJ procedures are published.

For All Market Participants

Monitor Regulatory Developments: The Draft Regulations will enter into force ninety (90) days after publication in the Official Gazette. Monitor official JSC and CBJ official channels for publication announcements and licensing commencement dates. Engage legal counsel to assess how new requirements apply to specific business models to navigate the licensing process effectively.

Cease Unlicensed Activity: Immediately suspend any operations targeting Jordanian customers until licensing is secured to avoid imprisonment and substantial fines.

Prepare for Ongoing Compliance: VASPs must appoint an external auditor for their accounts and an external technical auditor for their electronic systems and services, including virtual asset custody procedures, in accordance with JSC instructions. VASPs must provide and maintain adequate systems and controls to ensure compliance with regulatory requirements and establish a compliance function in accordance with JSC instructions. Retain qualified legal and compliance advisers to ensure ongoing adherence to evolving regulatory standards and to manage reporting obligations effectively.