Jordan’s Regulatory Shift on Cryptocurrency Trading
In a significant regulatory shift, Jordan is preparing to authorize cryptocurrency trading as it moves to implement a digital asset regulatory framework by the end of this year. This initiative, confirmed by the Jordan Securities Commission (JSC), follows a cabinet decision made last month to lift the previous prohibition that had mirrored similar restrictions across various Arab states, mainly due to concerns over financial risks and money laundering activities.
Background on Previous Restrictions
Previously, individuals caught engaging in unauthorized crypto trading faced severe penalties, including substantial fines and possible imprisonment, adding to the urgency for a regulatory overhaul. Bitcoin.com News reported on the context of the former ban, stressing its seriousness in combating illicit financial behaviors.
Establishment of a Regulatory Framework
The JSC, which was assigned the task of establishing this regulatory framework in January, is poised to introduce laws that will cultivate a safe trading environment, emphasizing transparency and user trust. According to JSC Chairman Emad Abu Haltam, the forthcoming regulations will detail licensing processes for brokers, trading operations, custody services, and the broader financial services landscape surrounding virtual assets.
Key Features of the Upcoming Regulations
These measures are designed to meet rigorous standards involving technical preparedness, governance, capital adequacy, and compliance with anti-money laundering and counter-terrorism financing protocols.
Future of Virtual Currency Trading in Jordan
This upcoming framework originates from a cabinet initiative approved nearly a year ago to create a robust structure for virtual currency trading. As outlined in the draft Virtual Currency Trading Law of 2025, only entities licensed by the JSC will be authorized to engage in virtual asset operations in Jordan. The legislation will also grant Jordan’s regulatory bodies the power to close down any unlicensed operations and will enable the Central Bank of Jordan to permit the use of virtual assets for transactions under defined criteria.
