Jordan Compliance Report

Generated 2026-09-22

No Guidance

Regulatory Overview

Regulatory Status: Regulators have not addressed crypto; legal status ambiguous
Key Regulator(s): Central Bank of Jordan Official Statement, Jordan Securities Commission
Primary Legislation: Law enforcement action against individuals involved in fraud, scams, or money la, Law No. 20 of 2021
Travel Rule: Adopted — Threshold: Implemented
Tax Reporting: Reference: Central Bank of Jordan (CBJ) official statements and warnings on virtual currencies. While specific dedicated pages might change, the CBJ's position is consistently communicated through press releases and official advisories.. General CBJ website: https://www.cbj.gov.jo/. Search for news/press releases related to "cryptocurrency" or "virtual assets" on their site.. Individuals: Jordan generally does not impose a separate capital gains tax on the sale of movable assets (like shares, bonds, or, by extension, cryptocurrencies if considered an asset) held by individuals, provided these gains are not derived from a "business activity.". If an individual frequently trades cryptocurrencies in a manner that could be construed as a business activity, the profits could theoretically be subject to income tax under general principles. However, given the CBJ's ban, engaging in such activities regularly might also raise regulatory concerns.

Key Facts

aml Anti-Money Laundering and Counter-Terrorist Financing Law No. 20 of 2021: This is the most recent comprehensive law that aligns Jordan's framework more closely with international standards, including FATF recommendations. While it doesn't explicitly detail VASP licensing, it broadens the scope of entities subject to AML/CFT obligations and strengthens preventative measures. It aims to cover all financial institutions and designated non-financial businesses and professions (DNFBPs) that might be exposed to ML/TF risks. For Individuals: Obtaining and verifying the customer's full name, date of birth, place of birth, nationality, permanent address, national identification number (e.g., national ID card, passport), and occupation. This often requires reliable, independent source documents (e.g., government-issued ID, utility bills). For Legal Entities/Arrangements: Obtaining and verifying the legal entity's name, legal form, proof of existence (e.g., certificate of incorporation), address of registered office, names of directors/senior management, and provisions governing the power to bind the entity. Identification of Beneficial Ownership: For legal entities or arrangements, identifying and verifying the identity of the natural persons who ultimately own or control the customer, or the natural person on whose behalf a transaction is being conducted. Understanding the Purpose and Intended Nature of the Business Relationship: Collecting information on the customer's typical transaction patterns, the nature of their virtual asset activities, and the source of funds/wealth. Ongoing Monitoring: Continuously scrutinizing transactions undertaken by customers to ensure they are consistent with the VASP’s knowledge of the customer, their business, and risk profile, including (where necessary) the source of funds. Enhanced Due Diligence (EDD): Applying stricter measures for higher-risk situations, such as: Transactions involving high-risk jurisdictions.
enforcement Entity Targeted: General public, financial institutions, and anyone contemplating dealing in cryptocurrencies. Violation Type: Dealing in, trading, or promoting cryptocurrencies within the Jordanian financial system is prohibited and deemed risky. The CBJ considers cryptocurrencies to carry high risks due to their volatile nature, lack of regulatory oversight, potential for money laundering and terrorist financing, and cyber risks. Penalty Amount: Not applicable to a general warning/prohibition. However, engaging in prohibited activities could lead to legal repercussions under existing financial and anti-money laundering laws, though specific penalties for crypto dealing outside of fraud aren't often publicized for individuals. Licensed financial institutions found violating CBJ directives could face regulatory penalties. Outcome: Maintenance of a strict prohibitory environment, discouraging financial institutions from engaging in crypto-related activities and warning the public against associated risks. Outcome: Maintenance of a strict prohibitory environment, discouraging financial institutions from engaging in crypto-related activities and warning the public against associated risks.
general There is no established application process for virtual asset service provider licenses in Jordan, as such licenses are not being issued. An Investment of Money: An investor commits capital or assets. In a Common Enterprise: The investor's funds are pooled with others, and there's interdependence between the fortunes of the investors and the success of the enterprise. With an Expectation of Profit: The investor anticipates financial gain. Derived Solely (or Predominantly) from the Efforts of Others: The success of the investment relies on the managerial or entrepreneurial efforts of the issuer or a third party, rather than the efforts of the investor. Jordan Securities Commission Law No. 18 of 2017: This foundational law defines "securities" broadly, encompassing various financial instruments that represent an investment. JSC Circular No. 12/1/1/1043 dated April 27, 2021, on Virtual Assets: This circular provides initial guidance, stating that virtual assets that meet the definition of "securities" under the JSC Law are subject to its regulatory oversight. JSC's "Regulatory Guidance on Virtual Assets" (subsequently issued or elaborated upon): This guidance further details how the JSC applies existing securities laws to various types of virtual assets, emphasizing the investment contract analysis.
licensing Repeated warnings and clarifications of the prohibition. Law enforcement action against individuals involved in fraud, scams, or money laundering where crypto is a component. Directives to financial institutions to not deal with crypto. Regulator Name: Central Bank of Jordan (CBJ) Date: Multiple instances, with consistent reiteration over the past several years. Key recent reiterations include: December 2021: The CBJ re-emphasized its warning regarding dealing in cryptocurrencies. Ongoing: The CBJ's official statements and public advisories consistently highlight the risks and prohibition. Jordan Times (Dec 2021, referring to CBJ warning): https://www.jordantimes.com/news/local/cbj-warns-against-dealing-cryptocurrencies-financial-transactions
securities Jordan has established a formal regulatory framework for virtual assets through Regulation No. (94) for the Year 2025, which mandates licensing for Virtual Assets Services Providers (VASPs) under the Jordan Securities Commission (JSC) Jordan Securities Commission | Jordan Securities Commission Publishes Draft Project of Executive Instructions for Virtual Assets Activities for the Year 2026. The JSC is the primary regulator for virtual asset activities, having published the Draft Project of Executive Instructions for Virtual Assets Activities for Year 2026, which consists of 127 articles covering platform operations, custody, brokerage, and issuance Jordan Securities Commission | Jordan Securities Commission Publishes Draft Project of Executive Instructions for Virtual Assets Activities for the Year 2026. An online application form for Initial Approval for VASPs is now available on the JSC website in both Arabic and English, and an online portal for initial approval requests has been launched Jordan Securities Commission | Jordan Securities Commission Publishes Draft Project of Executive Instructions for Virtual Assets Activities for the Year 2026. As of the publication date, the Draft Executive Instructions are still open for public consultation via the government's Tawasal platform, meaning the final operational framework is still being finalized Jordan Securities Commission | Jordan Securities Commission Publishes Draft Project of Executive Instructions for Virtual Assets Activities for the Year 2026. The practical reality is that Jordan is actively building its VASP licensing regime, with the JSC cooperating with the Central Bank of Jordan, AML/CTF Unit, National Cyber Security Center, and Ministry of Digital Economy and Entrepreneurship to establish a comprehensive framework Jordan Securities Commission | Jordan Securities Commission Publishes Draft Project of Executive Instructions for Virtual Assets Activities for the Year 2026. The Jordan Securities Commission (JSC) is a governmental regulatory institution with financial, administrative, and technical independence, responsible for regulating and developing the securities sector in Jordan Jordan Securities Commission | JSC Responsibilities. The JSC's responsibilities include proposing legislations, implementing them to develop the securities sector, protecting securities investors, and regulating the issuance of securities and trading in them under the provisions of the Securities Law Jordan Securities Commission | JSC Responsibilities. The primary securities law in Jordan is the Securities Law No. (18) for the Year 2017, which establishes the legal basis for securities regulation in the country Law No. (18) for the Year 2017 The Securities Law Article (1).
stablecoin No Specific Classification: Jordan's legislation does not explicitly define or classify stablecoins as e-money, payment tokens, or securities. E-Money/Payment Tokens: If a stablecoin were to be recognized and regulated, it would most likely fall under the Payment Systems and Services Law No. 11 of 2017. This law governs electronic payment services, including e-money. A stablecoin could potentially be considered e-money if it represents electronically stored monetary value as a claim on an issuer, used for payment transactions. Payment Systems and Services Law No. 11 of 2017: While a direct English translation from an official CBJ site can be hard to find, reputable sources and international organizations refer to it. For instance, the World Bank's Global Payment Systems Survey for Jordan references this law extensively. Example summary reference: International Finance Corporation (IFC) on Jordan's Payment System (Though this is a general reference, the law is foundational to Jordan's payment system.) Another relevant source citing the law: Central Bank of Jordan - Overview of Payment Systems (This page describes the regulatory framework for payment systems, implicitly referring to the Payment Systems and Services Law). Securities: Less likely for typical stablecoins aiming for price stability. However, if a stablecoin's design includes features that give holders rights to profits, equity, or other investment characteristics, it could potentially be viewed as a security under the Securities Law No. 18 of 2017, regulated by the Jordan Securities Commission (JSC). Jordan Securities Commission (JSC) - Laws and Regulations (This is the Arabic version. English translations of specific laws are often provided by law firms or on legal databases).
tax Reference: Central Bank of Jordan (CBJ) official statements and warnings on virtual currencies. While specific dedicated pages might change, the CBJ's position is consistently communicated through press releases and official advisories. General CBJ website: https://www.cbj.gov.jo/ Search for news/press releases related to "cryptocurrency" or "virtual assets" on their site. Individuals: Jordan generally does not impose a separate capital gains tax on the sale of movable assets (like shares, bonds, or, by extension, cryptocurrencies if considered an asset) held by individuals, provided these gains are not derived from a "business activity." If an individual frequently trades cryptocurrencies in a manner that could be construed as a business activity, the profits could theoretically be subject to income tax under general principles. However, given the CBJ's ban, engaging in such activities regularly might also raise regulatory concerns. Businesses: If a company were to legally engage in buying and selling cryptocurrencies (e.g., if it's operating outside Jordan's financial system or if the rules were to change), any profits realized from such activities would be considered ordinary business income and would be subject to the standard corporate income tax rates. General Principle: Income derived from any source in Jordan is generally subject to income tax. The challenge with crypto is determining what constitutes a legally recognized "source of income." Mining: If a business or individual undertakes crypto mining, and the resulting crypto is sold for profit, this could theoretically be considered income. For businesses, it would be part of their taxable income. For individuals, if it's done systematically for profit, it could be argued by tax authorities to be a taxable activity, falling under general income tax rules.
travel rule Which VASPs are Covered? Exchanging between virtual assets and fiat currencies. Exchanging between one or more forms of virtual assets. Transfer of virtual assets. Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets. Participation in and provision of financial services related to an issuer's offer and/or sale of a virtual asset. Collect required information: Obtain and hold accurate and meaningful originator information and required beneficiary information for virtual asset transfers. Transmit required information: Submit the required originator and beneficiary information to the beneficiary VASP (or to the originator VASP in the case of a receipt).

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-09. View full profile