Introduction
Jordan is preparing to implement a significant piece of legislation aimed at regulating trading in digital assets. The Virtual Currency Trading Law of 2025, which will be officially published in the country’s gazette, is set to take effect in 90 days.
Scope of the Law
This law will oversee activities related to virtual assets conducted within Jordan or on behalf of external parties. However, it will not extend its reach to digital securities or financial assets overseen by the Securities Commission, nor to digital currencies issued by the Central Bank of Jordan.
Key Provisions
According to a statement from the Jordanian government, the law enables the Cabinet to classify other forms of digital value as investment instruments, potentially expanding the scope of regulation. It mandates that only those entities who receive a license from the Securities Commission will be allowed to engage in virtual asset-related activities in Jordan. The guidelines specify that any activities count as being within Jordan’s jurisdiction if the service provider maintains a presence or targets Jordanian consumers.
Regulatory Responsibilities
The Securities Commission is entrusted with the responsibility of licensing, monitoring, and supervising entities that provide virtual asset services, ensuring they adhere to pertinent anti-money laundering and counter-terrorism financing policies. Additionally, the Central Bank will have a role in regulating the use of virtual assets for payments, subject to specific compliance regulations, and will oversee financial institutions involved in virtual asset transactions after granting the necessary approvals.
Consequences of Non-Compliance
Non-compliance with these regulations carries serious consequences, including a minimum imprisonment of one year and fines ranging from approximately $70,500 to $141,000 for individuals who violate the law. Jordan’s authorities will also have the power to close down any unlicensed operations, signaling a tough stance on unauthorized crypto activities.
