Centralized exchange in Jordan
Order-book exchange that takes custody of user assets and matches trades between users.
CEX is not permitted in Jordan.
Verdict Details
- Permitted
- no
- Local entity required
- No
- Licensing burden
- None
- Last updated
- 2026-07-13
AML Obligations
- AML/CFT Law No. 20 of 2021 applies (CDD, EDD, record-keeping, STR filing) to any entity falling under CBJ supervision — but no VASP can lawfully operate in Jordan, so these obligations are de facto inapplicable to domestic VASP operations.
- Customer identification: full name, DOB, nationality, address, national ID/passport for individuals; corporate docs and beneficial ownership for legal entities.
- Ongoing transaction monitoring and suspicious transaction reporting (STRs) to the Financial Intelligence Unit (FIU-Jordan).
- Record-keeping: minimum 5 years.
- Enhanced Due Diligence (EDD) required for PEPs, high-risk jurisdictions, unusually large transactions.
- Designated AML/CFT compliance officer, internal policies, employee training, and independent audit required under the law.
Key Restrictions
- Absolute prohibition: Virtual assets are not legal tender and the CBJ has banned dealing, trading, and promoting cryptocurrencies within the Jordanian financial system.
- Financial institutions under CBJ supervision (banks, PSPs, etc.) are prohibited from dealing with virtual assets or providing crypto-related services.
- No licensing or registration framework exists for VASPs — there is no lawful pathway to operate a centralized exchange in Jordan.
- CBJ Circular No. 10/2022 and AML/CFT Law No. 20 of 2021 contemplate travel-rule obligations for VASPs, but these apply only to entities that cannot legally exist under current CBJ prohibitions.
Key Risks
- Enforcement risk: CBJ has publicly warned and the Jordanian authorities have taken law enforcement action against individuals involved in crypto-related fraud, scams, and money laundering.
- No regulatory pathway: there is no license or registration available, so any attempt to operate a centralized exchange targeting Jordanian residents would be per se unlawful.
- Financial institution compliance blockade: banks and PSPs are prohibited from facilitating crypto transactions, making fiat on/off-ramps effectively impossible within the formal financial system.
- Legal ambiguity for overseas operators: While Jordanian citizens may interact with international platforms, those platforms have no legal recognition or protection in Jordan and could face enforcement action.
Evidence
This verdict synthesizes the following facts. Each fact links to its primary source(s).
Central Bank of Jordan Official Statement (e.g., December 2021): While specific press release links can change, the CBJ's official website often hosts such statements. Searching the CBJ website directly is recommended for the latest official pronouncements. An example of news coverage based on CBJ statements:
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.
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.
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.
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.
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.
December 2021: The CBJ re-emphasized its warning regarding dealing in cryptocurrencies.
Jordan Times (Dec 2021, referring to CBJ warning): https://www.jordantimes.com/news/local/cbj-warns-against-dealing-cryptocurrencies-financial-transactions
Zawya (Reuters, March 2023, referring to ongoing stance): https://www.zawya.com/en/legal/regulation/crypto-regulation-in-jordan-what-you-need-to-know-mklb2q0a (This article provides context on the CBJ's ongoing prohibition).
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.
Central Bank of Jordan (CBJ) Circular No. 10/2022:
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.
Verdict Attribution
- Source:
- AI-Generated · Unreviewed
- AI synthesized:
- 2026-07-13 (deepseek-chat)
- Last updated:
- 2026-07-13
- Confidence:
- high
This verdict was produced by an AI model from the underlying facts. Confirm with counsel before relying on it for material decisions.
No — operating a centralized exchange in Jordan is impermissible; the Central Bank of Jordan has consistently prohibited dealing in cryptocurrencies, no licensing or registration regime exists for VASPs, financial institutions are banned from facilitating crypto transactions, and the CBJ has issued repeated public warnings and taken enforcement action against crypto-related activities.
Questions this verdict aims to answer
- What exchange / VASP license applies?
- What custody segregation rules apply to user assets?
- What market-conduct and listing rules apply?
- What travel-rule obligations apply on withdrawals?