Amman, June 17 (Petra) – The Virtual Currency Trading Law of 2025 was published in the Official Gazette and will come into effect 90 days following its publication.
The law stipulates that definitions provided in the Securities Law, the Anti-Money Laundering and Terrorism Financing Law, and other relevant legislation shall apply where appropriate, provided they do not conflict with the provisions of this law.
The legislation governs virtual asset-related activities conducted within the Kingdom or carried out on behalf of third parties. It excludes digital securities and financial assets regulated by the Securities Commission, digital representations of the Jordanian currency issued by the Central Bank of Jordan, and electronic money unless otherwise decided by the Central Bank. The Cabinet, upon recommendation, may subject other digital representations of value to the provisions of the law and consider them investment instruments.
Covered activities include operating and managing virtual asset platforms, exchanging virtual assets with Jordanian or foreign currencies, converting between virtual assets, transferring, storing, managing virtual assets, or offering related brokerage and financial services. The Council may classify and regulate these activities through instructions issued for this purpose.
The law prohibits individuals or entities from conducting or promoting virtual asset activities within the Kingdom unless licensed by the Securities Commission. Activities are considered within the Kingdom if the service provider is established or has a business presence in Jordan or markets its services to Jordanian clients.
The Securities Commission is entrusted with licensing, monitoring, and supervising virtual asset service providers, including ensuring their compliance with anti-money laundering, counter-terrorism financing, and anti-proliferation regulations. The Commission may assess risks associated with virtual assets and coordinate with relevant authorities to mitigate potential threats.
Additionally, virtual asset service providers must adhere to capital requirements, licensing conditions, reporting obligations, and data collection responsibilities. These providers are required to obtain data related to transfers, treat virtual asset transactions as cross-border, and separate client funds and assets from their own, shielding them from seizure, liquidation, or insolvency procedures.
The law permits the Central Bank to authorize the use of virtual assets for payment purposes in accordance with specified regulations. Without such authorization, providers are prohibited from using virtual assets for payments. The Central Bank shall oversee financial institutions under its jurisdiction engaged in certain virtual asset activities after granting prior approval.
Violations of the law may result in penalties under the Securities Law and Anti-Money Laundering and Terrorism Financing Law. Offenders of Article 5 face imprisonment of not less than one year and a fine ranging between JD50,000 and JD100,000. Authorities are empowered to shut down unlicensed operations and confiscate associated tools.
The law grants the Cabinet the authority to issue the necessary regulations, while the Securities Commission is mandated to issue technical instructions for implementation, including requirements governing virtual asset activities.
//Petra// AJ
17/06/2025 15:34:24
