Jordan -- Licensing Requirements Regulatory Overview

Jordan's regulatory landscape for virtual assets is characterized by a highly cautious and largely prohibitive stance, particularly from the Central Bank of Jordan (CBJ). Unlike jurisdictions that have established specific licensing frameworks for Virtual Asset Service Providers (VASPs), Jordan has not yet developed such a regime.

Here's a breakdown:

1. Current Regulatory Stance and Lack of Specific Licensing Regime

The Central Bank of Jordan (CBJ) has repeatedly issued warnings and statements clarifying its position on virtual assets:

• Not Legal Tender: Virtual assets (like Bitcoin) are explicitly stated not to be legal tender in Jordan.
• Prohibition for Regulated Entities: Financial institutions operating under CBJ supervision (banks, payment service providers, etc.) are generally prohibited from dealing with virtual assets, facilitating transactions involving them, or providing services related to them to customers. This effectively means that regulated financial entities cannot offer crypto services.
• Warnings to the Public: The CBJ has consistently warned the public about the high risks associated with dealing in virtual assets, including price volatility, lack of consumer protection, cybersecurity risks, and potential use in illicit activities.

Conclusion: As of now, there is no specific, active licensing regime in Jordan for entities wishing to operate as cryptocurrency exchanges, custody providers, or payment processors for virtual assets within the country. The environment is more akin to a prohibition for financial institutions and a strong warning for individuals, rather than a regulated market.

2. Required Licenses for Exchanges, Custody Providers, and Payment Processors

Given the current regulatory stance:

• No Specific Licenses Exist: There are no prescribed licenses for these activities because the CBJ has not opened the market for them.
• Implied Prohibition: Any entity seeking to operate these services within Jordan and deal with Jordanian residents or financial institutions would likely run afoul of CBJ directives.
• Overseas Operators: While Jordanian citizens might interact with international crypto platforms, these platforms are not licensed or regulated by Jordanian authorities.

3. Registration vs. Licensing Regime

• Neither is in place for VASPs: Jordan currently operates neither a registration-only regime nor a comprehensive licensing regime specifically for virtual asset service providers. The approach is more restrictive.

4. Key Requirements (Capital, AML/KYC, Local Presence)

Since there is no licensing regime, there are no specific, published requirements for VASPs regarding capital, AML/KYC tailored to crypto, or local presence for the purpose of obtaining a VASP license.

However, it is crucial to understand:

• Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT): Jordan has a robust AML/CFT framework. If a VASP regime were ever to be introduced, it would undoubtedly incorporate strict AML/CFT requirements.
  • Jordanian Anti-Money Laundering and Counter-Terrorist Financing Law (Law No. 20 of 2021): This law applies broadly to financial activities and would be the foundational legislation. Any entity deemed a "financial institution" or engaging in regulated activities would fall under its scope, requiring:
    • Customer Due Diligence (CDD) / Know Your Customer (KYC) procedures.
    • Record-keeping.
    • Reporting of suspicious transactions to the Anti-Money Laundering and Counter-Terrorist Financing Unit (AMLU).
    • Risk-based approaches.
• General Corporate Requirements: Any company operating in Jordan, regardless of its industry, must comply with general corporate laws, including company registration, taxation, and potentially local presence requirements (e.g., a registered office, local directors/employees) depending on the nature and scale of operations.

5. Application Process

• There is no established application process for virtual asset service provider licenses in Jordan, as such licenses are not being issued.

6. Specific Regulatory References

It's often challenging to find a single, comprehensive English policy document from the Central Bank of Jordan specifically outlining a prohibition or a detailed stance on virtual assets on a permanent page. Their position is frequently communicated through press releases, news reports quoting officials, and circulars to financial institutions (often in Arabic).

1. Central Bank of Jordan (CBJ) Statements and Warnings:

   • While a dedicated "policy page" might not exist, news articles consistently report on the CBJ's warnings. You can often find press releases or news items on the CBJ website, though they might be in Arabic or less permanently archived in English.
   • General CBJ News Section: Keep an eye on the news section of the CBJ website for updates or renewed warnings.
     • Central Bank of Jordan Official Website (Navigate to news/announcements section).
   • Example of reported stance (via reputable news): Numerous news outlets have reported on the CBJ's warnings against crypto, such as this example from the Jordan Times, quoting CBJ officials:
     • Jordan Times: CBJ reiterates warning against cryptocurrencies (Note: This is a news report, not a direct CBJ policy document, but it reflects their publicly stated position).

2. Anti-Money Laundering and Counter-Terrorist Financing Law (Law No. 20 of 2021):

   • This is the primary AML/CFT legislation in Jordan. Any future financial service, including virtual assets if they were to be regulated, would fall under its purview.
   • Official Source: You would typically find this law on the official legislative databases of the Jordanian government. Searching for "قانون مكافحة غسل الأموال وتمويل الإرهاب رقم 20 لسنة 2021 الأردن" (Anti-Money Laundering and Counter-Terrorism Financing Law No. 20 of 2021 Jordan) will yield results, usually in Arabic.
   • English Translation (often unofficial):
     • You might find unofficial English translations via legal research platforms, but always refer to the official Arabic text.

Conclusion

Jordan maintains a highly conservative and largely prohibitive stance on virtual assets for domestic financial institutions and licensed operations. There is currently no framework for licensing or registering cryptocurrency exchanges, custody providers, or payment processors. While the global trend is towards regulation, Jordan has opted for a cautious approach, emphasizing consumer protection and financial stability by restricting engagement with these assets within its regulated financial sector. Any entity considering operations in Jordan related to virtual assets should assume a non-permissive environment and seek direct, up-to-date legal counsel.

Disclaimer: The information provided is for general informational purposes only and does not constitute legal, financial, or professional advice. Laws and regulations are subject to change. It is essential to consult with legal professionals specializing in Jordanian financial regulations for specific advice.