Jordan Banking Ban on Cryptocurrency Transactions: What Changed in 2025

Just a few years ago, if you tried to buy Bitcoin through a bank in Jordan, you’d hit a wall. Banks were told not to touch cryptocurrency. No deposits. No withdrawals. No exchanges. It wasn’t just discouraged - it was banned. That changed in 2025. And not with a whisper. With a law.

From Ban to Blueprint: How Jordan Turned Its Crypto Policy Around

In 2014, the Central Bank of Jordan issued a warning: banks must not engage with any virtual assets. The reasons were clear - volatility, fraud, money laundering. At the time, global regulators were wary. The U.S. was still figuring out how to classify Bitcoin. Europe was debating. Jordan chose caution. It shut the door.

But the door didn’t stay shut. People kept trading. Peer-to-peer. WhatsApp groups. Telegram channels. Cash handovers in Amman coffee shops. The ban didn’t stop crypto - it just pushed it underground. And that created new risks: no consumer protection, no oversight, no way to trace illegal activity.

The real turning point came in September 2025, with the passage of Law No. 14 of 2025, officially called the Virtual Assets Transactions Regulation Law. This wasn’t a tweak. It was a full reset. Jordan went from saying "no" to saying "here’s how to do it right."

What the New Law Actually Allows (and What It Still Blocks)

Under Law No. 14, banks in Jordan can now legally handle cryptocurrency - but only in very specific ways.

• Allowed: Licensed banks can exchange virtual assets for Jordanian Dinars and offer custodial services (like holding crypto wallets on behalf of clients), but only after getting explicit approval from the Central Bank of Jordan (CBJ).
• Blocked: Banks are still not allowed to transfer crypto between accounts or act as crypto payment processors. This keeps crypto tied to the national currency system and prevents capital flight.

That’s a smart middle ground. It lets people buy and hold crypto through regulated channels without turning banks into crypto exchanges. It also protects the Jordanian Dinar’s role as the backbone of the economy.

The law doesn’t just focus on banks. It creates a licensing system for Virtual Asset Service Providers (VASPs) - companies that offer crypto trading, wallet services, or exchange platforms. To get licensed, they must:

• Verify every customer’s identity (KYC)
• Report suspicious transactions to the Anti-Money Laundering Unit
• Undergo regular audits
• Keep detailed records of all transactions for at least five years

This isn’t just paperwork. It’s a full compliance infrastructure. Think of it like how banks handle wire transfers - now, crypto transactions have to meet the same standards.

Who’s Watching Over This New System?

Jordan didn’t leave regulation to one agency. It spread responsibility across three key bodies:

• Central Bank of Jordan (CBJ): Manages monetary policy and approves which banks can enter the crypto space.
• Jordan Securities Commission: Oversees crypto as an investment product - think of it like regulating stocks.
• Anti-Money Laundering Unit: Watches for criminal activity and enforces reporting rules.

Plus, a ministerial committee led by the Minister of Digital Economy coordinates everything. That’s rare. Most countries let one agency handle it. Jordan made sure finance, tech, and law enforcement are all at the table.

Why This Matters Beyond Jordan’s Borders

Jordan’s shift wasn’t just local. It was global.

In October 2023, Jordan was removed from the Financial Action Task Force (FATF) grey list. That’s a big deal. The FATF is the global watchdog for financial crime. Being on their list meant foreign banks were wary of dealing with Jordanian institutions. Getting off it opened doors - trade, investment, partnerships.

Jordan earned that removal by fixing its AML/CFT systems. Law No. 14 of 2025 was the final piece. It showed the world Jordan wasn’t just talking - it was acting. And it acted with precision.

Compare that to neighbors like Egypt, Kuwait, and Iraq - still outright banning crypto. Or the UAE, which welcomed crypto with open arms but has a more complex, federal system. Jordan carved out its own path: regulated, controlled, and intentional.

The Criminal Side: What Happens If You Break the Rules?

The old days of informal crypto trading? They’re over.

Under Article 15 of Law No. 14, running an unlicensed crypto exchange, acting as a broker, or facilitating trades without a license is now a criminal offense. Penalties include:

• At least one year in prison
• Fines between 50,000 and 100,000 Jordanian Dinars (roughly $70,000-$140,000 USD)
• Confiscation of equipment
• Forced closure of business premises

This is serious. And it’s meant to be. The government isn’t trying to scare people away from crypto - it’s trying to scare away criminals.

But there’s still a gray area. What if you’re just a regular person buying Bitcoin on a peer-to-peer app? Are you breaking the law? The law doesn’t say. That’s a gap. Experts expect clarification soon.

What’s Not Covered - And Why That’s Important

Law No. 14 doesn’t touch everything. It specifically excludes:

• Digital securities (like tokenized stocks or bonds)
• Digital financial assets (e.g., stablecoins backed by real assets)
• Central Bank Digital Currency (CBDC) - Jordan’s own digital dinar, which is still in development

That’s not an oversight. It’s strategy. The government is treating these as separate categories, each with their own risks and rules. This shows deep understanding. Crypto isn’t one thing. It’s many. And Jordan is building a system that can handle each piece.

What’s Next for Jordan’s Crypto Scene?

The FinTech Regulatory Sandbox, running since 2018, gave regulators real-world data on blockchain applications. That’s why Law No. 14 works - it’s based on testing, not theory.

Now, banks are starting to train staff. VASPs are applying for licenses. International investors are watching. Jordan isn’t trying to become the next Dubai. It’s aiming to be the most reliable crypto hub in the region.

The goal? To attract ethical innovation. To protect consumers. To keep money flowing through the formal economy. And to prove that regulation and innovation aren’t opposites - they’re partners.

Why This Matters to You

If you’re in Jordan: You can now legally buy and hold crypto through your bank - if they offer it. But you can’t send it abroad through them. Use licensed platforms. Know who you’re dealing with. And never assume an unlicensed service is safe.

If you’re outside Jordan: This is a model worth watching. A country that once banned crypto is now leading in regulated adoption. It didn’t happen overnight. It took years of pressure, real-world experimentation, and political will. Other nations in the Middle East - and beyond - will look at Jordan and ask: "How did they do it?" The answer? They didn’t ignore the problem. They fixed it - with rules, not bans.