Jordan Crypto Regulation Explorer
New Regulatory Framework
Law No. 14 of 2025 introduced a licensing pathway for Virtual Asset Service Providers (VASPs).
Banking Permissions
Licensed banks can exchange crypto for JOD and offer custodial services with CBJ approval.
Key Compliance Requirements
- AML/KYC Standards Mandatory
- Technology Security Required
- Asset Segregation Essential
- Regular Audits Ongoing
Multi-Agency Oversight
Central Bank of Jordan
Monetary authority & licensing
Jordan Securities Commission
Investment-related assets
Anti-Money Laundering Unit
AML/CTF enforcement
Penalties for Non-Compliance
- Imprisonment ≥1 year
- Fines Up to 100,000 JD
- Closure Possible
- Equipment Seizure Likely
Before vs. After Comparison
| Aspect | Pre-2025 Ban | Post-2025 Framework |
|---|---|---|
| Banking Activity | Strictly prohibited | Allowed with CBJ license |
| Legal Status of VASPs | Illegal operations | Licensing pathway defined |
| Regulatory Oversight | Central Bank only | Multi-agency coordination |
| Penalties | Administrative warnings | Imprisonment & fines |
| International Standing | High-risk by FATF | Removed from grey list |
For years Jordan’s banks treated cryptocurrency like a forbidden fruit - the Central Bank of Jordan (CBJ) warned institutions to stay away, and any hint of crypto dealings could trigger sanctions. Fast forward to September 2025, and the same regulator is now signing off on licenses for crypto‑friendly banks. This article unpacks how a blanket ban morphed into a full‑blown regulatory framework, what the law actually allows, and why the shift matters for investors, fintech firms, and everyday Jordanians.
TL;DR
- Jordan banned banks from crypto activities in 2014; the ban was lifted in September 2025 with Law No.14.
- Banks can now exchange crypto for Jordanian dinars and offer custodial services, but must obtain CBJ approval.
- Three agencies - the CBJ, Jordan Securities Commission, and the Anti‑Money Laundering Unit - share oversight.
- Unlicensed crypto activities carry up to one year in prison and fines up to 100,000 JD.
- The new regime positions Jordan as a regulated fintech hub in the MENA region.
From Prohibition to Permission: A Brief History
When the Central Bank of Jordan first issued its warning in 2014, it did so out of genuine concern for volatility, fraud, and money‑laundering risks. Jordan was effectively a crypto‑free zone for banks, and any institution caught facilitating virtual‑asset transactions risked punitive action.
Despite the official stance, peer‑to‑peer trading thrived in underground forums and on social media. Small businesses and diaspora workers used informal channels to move funds, but the lack of legal clarity left everyone vulnerable.
What Law No.14 of 2025 Changes
Enacted on 14September2025, Law No.14 of 2025 (Virtual Assets Transactions Regulation Law) flips the script. Rather than a blanket prohibition, the law sets out a licensing pathway for Virtual Asset Service Providers entities that offer crypto exchange, custodial, or payment services and clarifies what banks may do.
Key provisions include:
- Article11: Licensed banks can exchange virtual assets for fiat and hold them in custodial accounts, but they cannot act as pure crypto transfer agents.
- Mandatory prior approval from the Central Bank of Jordan the country’s monetary authority overseeing stability and licensing.
- Strict KYC, AML, and CTF (counter‑terrorism financing) requirements for all VASPs.
How Banks Can Operate Under the New Rules
To start offering crypto services, a Jordanian bank must submit a detailed compliance dossier to the CBJ, demonstrating:
- Robust AML controls aligned with FATF standards.
- Technology that securely stores private keys and can generate audit‑ready transaction logs.
- Clear segregation of crypto assets from the bank’s core balance sheet.
Once approved, banks may:
- Facilitate conversion between bitcoin, ether, or other approved tokens and the Jordanian dinar (JOD).
- Provide custodial wallets for retail and institutional clients.
What banks cannot do is run a stand‑alone crypto exchange platform that allows users to trade peer‑to‑peer without involving the traditional banking system. This limitation helps the CBJ keep capital flows tied to the national currency and curtails the creation of a parallel, unregulated crypto economy.
Multi‑Agency Oversight: Who’s Watching What?
The regulatory ecosystem is deliberately split:
- Jordan Securities Commission regulates investment‑related virtual assets and ensures market integrity.
- Anti‑Money Laundering Unit enforces AML/CTF obligations for all crypto‑related entities.
- A ministerial committee led by the Minister of Digital Economy and Entrepreneurship coordinates policy across ministries.
This whole‑of‑government model mirrors the approach taken by leading fintech hubs and helps Jordan meet international compliance benchmarks.
Compliance Requirements and Penalties
Every VASP must embed a full KYC process, conduct enhanced due diligence for high‑risk customers, and file Suspicious Activity Reports (SARs) within 24hours of detection. Regular audits by an authorized compliance auditor are mandatory, and any breach triggers steep repercussions under Article15 of the law:
- Minimum one‑year imprisonment for illicit activity.
- Fines ranging from 50,000JD to 100,000JD.
- Potential closure of premises and confiscation of crypto‑related equipment.
While the law is crystal‑clear on corporate liability, ambiguity remains around whether an individual who simply uses an unlicensed platform could face criminal charges. Legal scholars are watching the first court cases closely for clarification.
Regional Context: How Jordan Stands Out
In the MENA region, policies range from outright bans (Kuwait, Iraq) to very permissive sandbox environments (UAE). Jordan’s new framework puts it among the first in the area to offer a comprehensive, government‑backed licensing regime while still keeping a firm grip on AML/CTF compliance. The country’s removal from the Financial Action Task Force the global watchdog on money‑laundering and terrorism financing grey list in October2023 helped pave the way for this regulatory confidence.
Compared with the UAE, which hosts over 500,000 daily crypto traders, Jordan’s market is smaller but arguably more stable for risk‑averse investors seeking a regulated environment.
What the New Regime Means for Stakeholders
For fintech startups, the law opens a clear path to obtain a VASP license, attract foreign capital, and partner with established banks for fiat on‑ramps.
For traditional banks, it offers a chance to diversify revenue streams while staying within the safety net of CBJ oversight.
For consumers, the shift brings greater protection - licensed custodial services must meet the same security standards as banks, and there’s now a legal recourse if something goes wrong.
For regulators, the multi‑agency model serves as a living lab to fine‑tune policies as the crypto market evolves.
Quick Comparison: Before vs. After Law No.14
| Aspect | 2014‑2025 Ban | 2025‑Present Framework |
|---|---|---|
| Banking Activity | Strictly prohibited to deal with crypto. | Allowed to exchange crypto‑fiat and provide custodial services after CBJ licence. |
| Legal Status of VASPs | Unlicensed operations were illegal. | Licensing pathway defined; must meet AML/KYC standards. |
| Regulatory Oversight | Central Bank only, focused on prohibition. | CBJ, Jordan Securities Commission, Anti‑Money Laundering Unit, and ministerial committee share duties. |
| Penalties | Administrative warnings, possible fines for banks. | Imprisonment (≥1yr), fines up to 100,000JD, closure of premises. |
| International Standing | Considered high‑risk by FATF. | Removed from FATF grey list; compliant with 32 of 40 recommendations. |
Looking Ahead
The sandbox that Jordan has run since 2018 will likely feed into future amendments - especially as the country explores central bank digital currencies (CBDCs) and tokenised securities. For now, the biggest win is clarity: businesses know the rules, regulators have tools to enforce them, and consumers gain a safety net.
Will Jordan become the go‑to gateway for compliant crypto services in the Levant? Time will tell, but the regulatory foundation is finally in place.
Frequently Asked Questions
Can I now buy Bitcoin directly from a Jordanian bank?
Only licensed banks that have received CBJ approval may offer Bitcoin‑to‑JOD conversion services. Check the bank’s website for a crypto‑service announcement.
What licences do crypto startups need to operate in Jordan?
Startups must apply for a Virtual Asset Service Provider licence from the CBJ, meet KYC/AML requirements, and register with the Jordan Securities Commission if they handle investment‑type tokens.
Are there any crypto assets that remain prohibited?
The law currently excludes digital securities, central bank digital currencies, and certain tokenised financial assets, which will be regulated under separate legislation.
What are the penalties for an individual using an unlicensed platform?
The statute focuses on corporate liability, but prosecutors can pursue individuals if they are found facilitating unlicensed services. Expected penalties mirror those for entities: fines and possible imprisonment.
How does Jordan’s new framework compare with the UAE’s crypto regulation?
Both countries require licensing and AML compliance, but the UAE operates a more market‑driven, multi‑authority system with a larger trader base. Jordan emphasizes a tighter, government‑centered model aimed at stability and compliance.
Corrie Moxon
Jordan's new crypto rules finally give banks a clear path forward.
Jeff Carson
The three‑agency oversight model is a big step forward, especially with the AML unit keeping a close eye on transactions. It also means banks now have a clear licensing checklist to follow :)
Overall, the coordination should help Jordan stay off the FATF grey list.
Anne Zaya
So basically banks can now trade Bitcoin for JOD, but only if they get that CBJ stamp of approval. The law also forces VASPs to keep crypto assets separate from their core books.
Emma Szabo
What’s cool is the custodial‑wallet requirement – banks have to store private keys in air‑gapped hardware, which is way safer than the hot‑wallet hacks we’ve seen elsewhere.
Plus, the mandatory AML/KYC processes line up with FATF standards, so investors can feel a lot less exposed.
Fiona Lam
Finally some sense! Letting banks dabble in crypto under strict rules is better than the wild west they had before.
OLAOLUWAPO SANDA
Do they really think this will fix everything? Simple rules won’t stop clever money‑launderers from finding new loopholes.
Alex Yepes
Law No. 14 establishes a licensing pathway that requires banks to submit a comprehensive compliance dossier, including AML controls aligned with FATF recommendations, technology safeguards for private‑key storage, and clear asset segregation policies.
Only after the Central Bank of Jordan grants approval may a bank offer conversion services between virtual assets and the Jordanian dinar, as well as custodial accounts for clients.
This structured approach should mitigate systemic risk while fostering fintech innovation.
Sumedha Nag
I’m not convinced the CBJ has the technical expertise to police crypto‑friendly banks. The regulator might end up being a bottleneck.
Holly Harrar
Yeh, the applcation process is actually not that hard – you just need to fill the form, upload your AML policy, and wait for the CBJ to say ‘yes’.
Make sure you keep the crypto separate from your main ledger, otherwise you’ll get fined big time.
Vijay Kumar
The new framework gives fintech startups a clear road to a VASP licence, which should attract foreign capital.
Banks can now diversify revenue streams, but they must keep crypto assets in segregated accounts and follow regular audit cycles.
Consumers benefit from legal protection if a custodian fails.
Edgardo Rodriguez
Jordan's decision to lift the blanket ban on crypto activities by banks is, on the surface, a progressive move; however, the practical implementation of Law No. 14 raises several critical considerations that merit thorough examination; first, the licensing dossier required by the Central Bank of Jordan imposes a substantial administrative burden on financial institutions, many of which lack in‑house expertise in blockchain technology; second, the stipulated AML/KYC standards, while aligning with FATF recommendations, demand continuous monitoring and reporting mechanisms that may strain existing compliance departments; third, the mandate for asset segregation necessitates the development of robust custodial infrastructure, including air‑gapped hardware wallets and multi‑signature schemes, which could be cost‑prohibitive for smaller banks; fourth, the multi‑agency oversight model introduces potential regulatory friction, as the Jordan Securities Commission, the Anti‑Money Laundering Unit, and the CBJ must coordinate to avoid duplicative inspections; fifth, the penalties for non‑compliance-ranging from fines up to 100,000 JD to imprisonment of at least one year-create a high‑stakes environment that may deter innovation; sixth, the law remains ambiguous regarding liability for individual users of unlicensed platforms, leaving a gray area for enforcement; seventh, the removal from the FATF grey list is a positive signal for international investors, yet sustained credibility will depend on consistent enforcement; eighth, the framework's emphasis on custodial services could inadvertently concentrate risk within a limited number of approved banks; ninth, the requirement for regular external audits introduces additional operational overhead; tenth, the provision that banks cannot act as pure peer‑to‑peer transfer agents preserves the centrality of fiat, potentially limiting the fluidity of crypto markets; eleventh, the law’s exclusion of certain digital securities and CBDCs signals forthcoming regulatory layers that will need seamless integration; twelfth, the potential for future amendments to address emerging tokenised assets suggests that today's compliance roadmap may evolve rapidly; thirteenth, stakeholder education remains a crucial component, as many retail users remain unaware of their rights and obligations under the new regime; fourteenth, the legal certainty provided by a licensing pathway may encourage fintech startups to seek Jordanian partnerships, fostering a regional fintech corridor; and fifteenth, the overall success of this regulatory shift will hinge on the CBJ's capacity to balance innovation with prudential oversight, ensuring that the nascent crypto ecosystem develops within a stable and transparent framework.
mudassir khan
This so‑called regulation reads like a PR stunt; the penalties are severe, yet enforcement is dubious, and the language is riddled with loopholes that will be exploited by savvy actors.
Bianca Giagante
We can find middle ground: uphold strong AML standards while allowing innovative fintech solutions to flourish; collaboration between regulators and industry will be key.
Andrew Else
Oh great, another “revolutionary” law that will probably just sit on the shelf.
Susan Brindle Kerr
One must appreciate the sheer audacity of positioning Jordan as a fintech beacon, yet the simplistic rhetoric hides the intricate challenges ahead.
Jared Carline
Jordan is setting a benchmark for regional financial sovereignty and should be commended for its decisive policy shift.
raghavan veera
It’s fascinating how policy can reshape the philosophical notion of trust in a digital economy; the law tries to codify trust through compliance.
Danielle Thompson
Nice move! 👍
Eric Levesque
This is a smart step for Jordan’s economy.
alex demaisip
The implementation of a tiered licensing architecture, underpinned by robust KYC/AML protocols and a multi‑jurisdictional supervisory framework, positions Jordan to leverage network effects inherent in digital asset ecosystems while mitigating systemic risk exposure.