Jordan Enacts First Legal Framework for Virtual Assets to Boost Financial Innovation

Jordan has officially passed Law No. 14 of 2025, known as the “Virtual Assets Transactions Regulation Law,” laying the foundation for a regulated virtual asset ecosystem in the Kingdom. The law was issued by His Majesty King Abdullah II Ibn Al Hussein and published in the Official Gazette, marking a significant step in the country’s journey toward fintech innovation and compliance with global standards.

Effective 90 days after publication, the law provides clear definitions, licensing requirements, and compliance obligations for virtual asset service providers (VASPs), addressing long-standing regulatory gaps in Jordan’s digital economy.

What the Law Covers: Scope and Definitions

The Virtual Assets Transactions Regulation Law applies to entities and individuals involved in virtual asset services within Jordan. It does not cover digital securities already regulated by the Jordan Securities Commission (JSC), digital representations of fiat currency issued by the Central Bank of Jordan, or investment funds under separate legislation.

The law defines a Virtual Asset as: “A digital representation of value that can be traded, transferred, or used for payment or investment purposes.”

This excludes traditional financial instruments and fiat currencies already regulated by other laws.

Key Activities and Licensing Requirements

The law explicitly lists activities requiring a license from the Jordan Securities Commission (JSC), including:

• Operating and managing virtual asset platforms
• Exchanging virtual assets for fiat or other crypto assets
• Transferring virtual assets between accounts or wallets
• Custodial services and managing tools that enable control over virtual assets
• Providing financial services for token sales or issuers

Licensing is mandatory, and providers must have a registered office in Jordan. Promoting unlicensed virtual asset services is strictly prohibited.

Strong Oversight by the Jordan Securities Commission

The JSC is tasked with licensing, monitoring, and enforcing compliance, especially in areas related to anti-money laundering (AML) and counter-terrorism financing (CTF). The Authority will also assess virtual asset risks and collaborate with relevant regulatory bodies.

Central Bank’s Role and Payment Use

While the law allows for virtual asset-related activities, payment use within Jordan requires explicit approval from the Central Bank. Financial institutions already regulated by the Central Bank must receive pre-approval before engaging in crypto-related services.

Safeguards and Consumer Protection

The law mandates that VASPs must:

• Segregate client assets from company assets
• Adhere to AML/CTF laws and report suspicious activity
• Treat virtual asset transfers as cross-border transactions
• Collect and retain data on transfers and involved parties

In the case of criminal activity, virtual assets are subject to confiscation under Jordanian law.

Penalties for Violations

Unlicensed providers face:

• Up to one year in prison
• Fines between 50,000 and 100,000 Jordanian Dinars
• Closure of premises and confiscation of equipment

The JSC is empowered to work with other authorities to enforce these penalties and shut down illicit operations.

Implementation and Next Steps

The Council of Ministers is tasked with issuing detailed regulations to operationalize the law, covering technical standards, licensing procedures, and compliance mechanisms. All relevant government departments and ministers are responsible for executing its provisions.

A Turning Point for Jordan’s Digital Economy

This law represents Jordan’s first comprehensive legal framework for virtual assets, aligning the country with international standards while creating room for innovation and investment. It reflects a collaborative effort between the Central Bank of Jordan, the Jordan Securities Commission, and the Prime Minister’s Office, as noted by CoinMENA CEO Talal Tabbaa in a recent LinkedIn post.

“This law will be a catalyst for building a more dynamic and inclusive financial future” Tabbaa wrote.

With this regulation in place, Jordan positions itself as a serious player in the regional digital asset space, offering clarity to entrepreneurs, investors, and institutions alike.