Jordan Approves Framework for Virtual Asset Regulation
The Cabinet of Jordan, under the leadership of Prime Minister Jafar Hassan, has approved the creation of a comprehensive regulatory framework for virtual and digital assets, with plans for implementation within a year.
This initiative is part of the country’s broader strategy to align with international standards and strengthen its digital economy.
This decision comes in response to directives from His Majesty King Abdullah II and His Royal Highness Crown Prince Al Hussein bin Abdullah II, who have emphasized the importance of advancing the tasks of the National Council for Future Technology. In fact, the move reflects Jordan’s ongoing commitment to modernizing its financial technology sector and empowering the nation’s youth to succeed in the digital economy.
The Jordan Securities Commission will play a central role in defining the regulatory requirements for entities dealing with virtual assets. The commission is also tasked with developing the legal and technical infrastructure necessary to license and regulate global trading platforms.
A preliminary study by the commission has underscored the need for a regulatory framework that not only aligns with international standards but also addresses key issues like financial crime prevention and governance.
To oversee the development of the framework, a ministerial committee has been formed, chaired by the Minister of Digital Economy and Entrepreneurship. The committee includes officials from key entities such as the Central Bank of Jordan, the Jordan Securities Commission, and the National Cybersecurity Center. Its mandate is to tackle regulatory challenges and establish a governance structure that promotes innovation while protecting investor interests.
This initiative is aligned with Jordan’s Economic Modernization Vision, which prioritizes creating a favorable environment for advanced technologies and innovation within the financial technology sector. By regulating virtual and digital assets, the country aims to improve its competitiveness in regional and global markets, attract foreign investments, and foster opportunities for local entrepreneurs.
In addition to economic growth, the regulatory framework is designed to mitigate risks such as money laundering and cyber threats, ensuring compliance with Financial Action Task Force (FATF) recommendations. The framework will also encourage the development of innovative solutions by startups, further positioning Jordan as a regional leader in financial technology.
With this step, Jordan joins a growing list of global leaders, including the United Arab Emirates, Bahrain, Turkey, the United States, and Japan, that have adopted regulatory measures for virtual assets. This highlights Jordan’s vision of integrating into the global digital economy, promoting sustainable growth, and advancing its FinTech capabilities.
