Jordan’s Crypto Policy: Central Bank Rules, AML Requirements & Licensing 2025

When the Central Bank of Jordan issued its first warning against Bitcoin in 2014, the crypto scene in Amman went underground. Fast‑forward to 2025, and the same institution now sits at the heart of a comprehensive regulatory framework that aims to turn that underground market into a legitimate, well‑monitored industry. This article walks you through the evolution, the current law, what it means for businesses, and where the market might head next.

From Prohibition to Regulation: A Timeline

• Feb 20, 2014 - CBJ Circular No. 2014‑02‑20 bans financial institutions from dealing with Bitcoin.
• 2023 - Jordan lands on the FATF grey list, prompting urgent policy reform.
• Oct 15, 2025 - Law No. 14 of 2025, titled the Virtual Assets Transactions Regulation Law, is published in the Government Gazette.
• Sep 14, 2025 - The law becomes operational after a 90‑day transition period.

This shift reflects Jordan’s desire to meet international AML standards while unlocking the economic potential of blockchain technology.

Key Pillars of Law No. 14 (2025)

The Virtual Assets Transactions Regulation Law introduces several core requirements:

1. Licensing regime: All virtual asset service providers (VASPs) must obtain a license from the Jordan Securities Commission (JSC). Operating without a license is a criminal offense.
2. AML/CFT compliance: Providers must follow Jordan’s AML Law No. 46 of 2007, conduct Customer Due Diligence (CDD), and apply Enhanced Due Diligence (EDD) for high‑risk clients such as Politically Exposed Persons (PEPs).
3. Transaction monitoring & Travel Rule: Every transaction above JOD10,000 must be screened and reported to the Anti‑Money Laundering Unit (AMLU).
4. Record‑keeping: Five‑year retention of all client and transaction data.
5. Penalties: Minimum one‑year prison term and fines up to $141,000 (≈100,000JOD) for violations.

Note that the law excludes Central Bank Digital Currencies (CBDCs) and digitised securities, which remain under separate oversight by the CBJ and the JSC respectively.

Who Does What? The Regulatory Landscape

The framework splits responsibilities among three main bodies:

• Jordan Securities Commission - Primary regulator for VASPs, issuing licenses, conducting audits, and enforcing AML rules.
• Central Bank of Jordan - Oversees currency‑related matters, including the upcoming CBDC pilot and coordination with the JSC.
• Anti‑Money Laundering Unit - Receives suspicious activity reports and enforces AML thresholds.

All three agencies report to a ministerial committee headed by the Minister of Digital Economy and Entrepreneurship, ensuring policy coherence across fintech, cybersecurity, and financial stability.

Jordan vs. Its Neighbours: A Quick Comparison

Jordan lands in the middle: more permissive than Kuwait but less mature than the UAE. The licensing cost and compliance burden are higher than in the UAE’s free‑zone models, yet the clear legal framework is a step forward for local entrepreneurs.

How to Obtain a License: Step‑by‑Step Guide

1. Pre‑application assessment - Conduct an internal AML readiness review. Estimated cost: JOD5,000.
2. Submit preliminary application to the JSC, including business plan and KYC policies. Fee: JOD5,000.
3. Provide detailed compliance documentation (risk assessment, transaction monitoring system specs). Fee: JOD15,000.
4. Operational readiness audit - On‑site review of IT infrastructure and AML officer qualifications. Fee: JOD10,000.
5. License issuance - If approved, the JSC issues a VASP license valid for three years, renewable upon review.

The total upfront cost tops JOD30,000 (≈$42,250). Smaller startups often struggle with this capital requirement, especially because the exact minimum capital thresholds have not yet been disclosed.

Compliance Checklist for VASPs

• Appoint a qualified AML compliance officer (certified under Jordan’s AML training program).
• Implement a transaction monitoring solution capable of flagging transfers > JOD10,000.
• Perform CDD on all new clients; apply EDD for PEPs and high‑risk jurisdictions.
• Maintain audit‑ready records for at least five years.
• Submit Suspicious Activity Reports (SARs) within 48hours of detection.
• Stay updated on the upcoming DeFi supplementary regulations (expected Q12026).

Missing any of these items can trigger heavy fines or even license revocation.

Market Impact: What the Numbers Say

Jordan’s crypto user base reached 1.2million in August2025 - roughly 10.8% of the population. Fitch Solutions projects transaction volume to climb from $150million (2024) to $750million by 2027, a 71% CAGR, assuming the regulatory climate remains stable.

However, 85% of current users still rely on peer‑to‑peer (P2P) trading, which means licensed exchanges have a massive untapped market. The JSC estimates a 6-8month adaptation period for existing operators to meet full compliance, creating a short‑term gap that could be filled by cross‑border platforms.

Future Outlook: CBDCs, DeFi, and Sharia‑Compliant Assets

The Central Bank of Jordan has announced a pilot CBDC slated for Q32026, building on the compliance infrastructure set up by Law14. Simultaneously, a ministerial committee is drafting DeFi regulations, signaling that the sandbox will soon expand beyond simple token trading.

Jordan’s 42 Islamic financial institutions position the kingdom to become a hub for Sharia‑compliant digital assets. The World Bank notes that this niche could attract regional capital seeking halal fintech solutions.

Success hinges on two factors: effective capacity building within the JSC (currently only 12 dedicated staff) and the country’s removal from the FATF grey list. S&P Global rates the five‑year implementation probability at 82% if these challenges are addressed.

Practical Tips for Small Operators

• Start early: Engage the JSC’s Virtual Assets Help Desk (available 24/7) to clarify licensing questions.
• Leverage open‑source AML tools while awaiting commercial solutions - many fintech startups have adapted tools like MISP for transaction monitoring.
• Partner with regional exchanges that already hold a UAE licence; cross‑border cooperation can reduce compliance costs.
• Educate customers about travel‑rule requirements to avoid back‑office bottlenecks.

These steps can shave months off the compliance timeline and keep operating costs manageable.