Central Bank of Jordan Crypto Policy: New Law No. 14 Explained

For over a decade, if you tried to trade Bitcoin or Ethereum in Jordan, you were walking on thin ice. The Central Bank of Jordan is the national monetary authority that strictly prohibited financial institutions from facilitating any cryptocurrency transactions starting in 2014 made it clear: stay away. But the ground shifted dramatically in 2025. The days of total prohibition are over, replaced by a complex, strict, and fully regulated framework known as Law No. 14 of 2025, also referred to as the Virtual Assets Transactions Regulation Law. This legislation transformed Jordan’s stance from an outright ban to a structured licensing regime, aiming to balance innovation with rigorous anti-money laundering standards.

If you are a trader, a fintech startup founder, or simply someone holding digital assets in Amman, understanding this new reality is not optional-it’s critical. The penalty for ignoring these rules is severe, including prison time and fines exceeding $140,000. So, what exactly has changed, who is in charge, and how do you navigate this new landscape without getting burned?

The Shift From Ban to Regulation

To understand where we are, we have to look at where we came from. Since February 20, 2014, the Central Bank of Jordan issued circulars forbidding banks from dealing with Bitcoin. For years, this created a shadow market. People traded peer-to-peer (P2P), often using informal networks because official channels were closed. It was risky, unregulated, and legally gray.

The turning point wasn’t just about embracing technology; it was about international pressure. In 2023, Jordan found itself on the Financial Action Task Force (FATF) is a global money laundering and terrorist financing watchdog that placed Jordan on its grey list due to vulnerabilities in virtual asset oversight grey list. Being on this list hurts a country’s economy, making international banking harder and raising the cost of doing business. To get off the list, Jordan had to close the loopholes.

Enter Law No. 14 of 2025. Passed to address FATF concerns, this law didn’t just legalize crypto; it built a cage around it. The law became operational on September 14, 2025. It explicitly prohibits anyone from conducting or promoting virtual asset activities within Jordan without a license. If you are marketing services to Jordanian customers, even if your server is abroad, you are subject to this law.

Who Is Actually in Charge?

Here is where it gets tricky for many people. You might assume the Central Bank of Jordan is still the boss of crypto. They aren’t anymore-at least, not directly.

Under the new law, the Jordan Securities Commission (JSC) is the primary regulatory authority designated to license and oversee Virtual Asset Service Providers (VASPs) in Jordan takes the lead. The JSC is responsible for issuing licenses to exchanges, wallet providers, and other service providers. They set the rules for compliance, monitor transactions, and enforce penalties.

However, the Central Bank of Jordan hasn’t disappeared. They retain jurisdiction over Central Bank Digital Currencies (CBDCs) are digital forms of fiat currency issued by the central bank, which are excluded from the general virtual assets law and remain under CBJ control. Also, digitized securities fall under the JSC’s traditional purview. For everything else-Bitcoin, Ethereum, stablecoins-the JSC is the gatekeeper.

The Cost of Compliance: Licensing and Fees

If you want to operate a crypto business in Jordan, expect to pay up. The JSC has established a multi-stage licensing process that is designed to filter out serious players from hobbyists. The total application cost alone hits JOD 30,000 (approximately $42,250). Here is how that breaks down:

• Preliminary Application Fee: JOD 5,000
• Detailed Compliance Documentation Processing Fee: JOD 15,000
• Operational Readiness Assessment Fee: JOD 10,000

This doesn’t include the ongoing costs of hiring a dedicated AML compliance officer, buying transaction monitoring software, or maintaining records for five years. For startups and SMEs, this is a massive barrier. Dr. Mohammad Al-Husseini, Director of the National Council for Future Technology, noted that while the framework unlocks potential, the "rigorous licensing and compliance requirements" present significant operational challenges for smaller entrants.

But why such high barriers? Because the stakes are high. Violations of the law carry a minimum prison sentence of one year and fines up to JOD 100,000 (about $141,000). The government is sending a clear message: play by the rules, or leave the market entirely.

AML/CFT Requirements: The Core of the Law

The heart of Law No. 14 is compliance with Jordan’s Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) laws. Specifically, businesses must adhere to AML/CFT Law No. 46 of 2007 is the foundational legal framework in Jordan requiring strict customer due diligence and reporting of suspicious financial activities. What does this mean for operators?

1. Customer Due Diligence (CDD): You must verify the identity of every user. No anonymous accounts.
2. Enhanced Due Diligence (EDD): High-risk clients, such as Politically Exposed Persons (PEPs), require extra scrutiny.
3. Transaction Monitoring: Systems must flag unusual activity in real-time.
4. Reporting Thresholds: Any transaction over JOD 10,000 must be reported to the Anti-Money Laundering Unit (AMLU) is the government body responsible for receiving and analyzing reports of large cash transactions and suspicious financial activities in Jordan.
5. The Travel Rule: When transferring funds between VASPs, you must share sender and receiver information.

Ahmed Al-Rawashdeh, CEO of the informal Jordan Crypto Exchange, pointed out in September 2025 that while the requirements are reasonable, the lack of published capital requirements created uncertainty during the transition. The JSC has since clarified these steps, but the learning curve remains steep. According to the Jordan Fintech Association, 73% of surveyed startups cited integrating transaction monitoring tools as their biggest technical hurdle.

How Jordan Compares to Its Neighbors

Jordan isn’t operating in a vacuum. Its neighbors are moving fast. Let’s look at the regional landscape to see where Jordan fits.

The United Arab Emirates (UAE) is a leading regional hub for cryptocurrency with a multi-layered federal regulatory structure and over 500,000 daily active traders is already the king of crypto in the Middle East. With a mature legal framework and billions in annual volume, they attract institutional giants. Jordan’s framework shares similarities but lacks the depth and ecosystem maturity of the UAE. Jordan entered the regulated space later, which means it faces implementation challenges that the UAE solved years ago.

On the other end of the spectrum are countries like Kuwait, Egypt, and Iraq. As of mid-2025, these nations still prohibit virtual asset use entirely. Jordan’s shift puts it in a unique middle position. It offers legal clarity that its neighbors don’t, potentially attracting users who are tired of operating in the shadows. However, it risks losing high-volume traders to the UAE’s more established infrastructure.

Bahrain is another competitor, having processed $450 million in regulated crypto transactions in Q3 2025. Jordan’s market, estimated at $150 million in 2024, aims to grow to $750 million by 2027. That’s a 71% compound annual growth rate, according to Fitch Solutions. Ambitious? Yes. Possible? Maybe, if the JSC can execute effectively.

What This Means for Everyday Users

If you are just a regular person in Amman wanting to buy some Bitcoin, things are changing for you too. Previously, you relied on P2P networks or risky international exchanges. Now, licensed local platforms should emerge. This brings safety. If a licensed exchange goes bankrupt or gets hacked, there is a regulatory body to complain to. There is consumer protection.

However, anonymity is dead. Under the new rules, every transaction is traceable. Your identity will be linked to your wallet. If you value privacy above all else, Jordan might feel less appealing. But for most users, the reassurance of a legal framework outweighs the loss of anonymity. On Reddit’s r/CryptoJordan, user 'AmmanTrader87' summed it up: "After years of P2P trading in the shadows, finally having a legal framework is reassuring."

Still, there is anxiety. Many worry that the high compliance costs will limit competition, leading to fewer choices and higher fees for consumers. Only time will tell if enough companies can afford the JOD 30,000 entry ticket to create a competitive market.

Looking Ahead: CBDCs and DeFi

The story isn’t over. The Central Bank of Jordan has signaled plans to launch a Central Bank Digital Currency (CBDC) pilot program scheduled for Q3 2026, following the stabilization of the virtual assets framework. This would be a digital version of the Jordanian Dinar, issued directly by the CBJ. Unlike Bitcoin, this would be centralized and controlled by the state, aimed at modernizing payments and reducing reliance on cash.

Additionally, a ministerial committee is working on supplementary regulations for Decentralized Finance (DeFi) platforms, expected by Q1 2026. DeFi poses a unique challenge because it lacks a central entity to license. How will Jordan regulate code? We won’t know until those guidelines drop.

There is also talk of Jordan becoming a hub for Sharia-compliant digital assets. With 42 Islamic financial institutions in the country, leveraging blockchain for ethical finance could be a niche strength. The World Bank sees potential here, suggesting Jordan could carve out a specialized role in the MENA region.

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