Jordan’s Crypto Ban Lifted: How Law No. 14 of 2025 Changed Banking Rules

For over a decade, if you tried to buy Bitcoin using your bank card in Jordan, the transaction would likely fail. The Central Bank of Jordan (CBJ) is the national regulatory authority responsible for monetary policy and financial stability had effectively banned banks from processing any cryptocurrency-related payments since 2014. But that era of strict prohibition ended with a major legislative shift. In September 2025, Jordan enacted Law No. 14 of 2025, also known as the Virtual Assets Transactions Regulation Law. This legislation completely reversed the country's stance on digital assets, moving from a blanket ban to a structured regulatory framework.

If you are looking to engage with crypto in Jordan today-whether as an investor, a business owner, or a fintech developer-you need to understand exactly what changed. The old rules are gone, but they have been replaced by specific licensing requirements and strict compliance protocols. This guide breaks down the new reality of cryptocurrency transactions in Jordan, who can participate, and what penalties still apply.

From Prohibition to Regulation: The Historical Shift

To understand why the current rules matter, we have to look at where things stood before 2025. Since 2014, the CBJ issued warnings that essentially forbade financial institutions from dealing with virtual assets. The concern was clear: volatility, fraud risks, and potential money laundering channels. Banks were told to stay away.

However, a total ban never stopped people from trading. Peer-to-peer (P2P) crypto exchanges continued informally. Individuals bought and sold Bitcoin through social media groups or private meetings, often using cash or informal transfer methods. This created a shadow market that operated outside the legal system, leaving consumers unprotected and regulators blind to capital flows.

The turning point came with Jordan’s broader push toward digital transformation. Recognizing that prohibition was ineffective and driving innovation underground, policymakers decided to bring virtual assets into the light. The result was Law No. 14 of 2025, signed into law on September 14, 2025. This wasn't just a minor tweak; it was a complete overhaul that aligned Jordan with global fintech trends while addressing local financial stability concerns.

What Banks Can Do Now Under Article 11

One of the biggest questions after the ban was lifted was whether traditional banks could finally touch crypto. The answer is yes, but with significant caveats. Article 11 of Law No. 14 explicitly permits licensed banking institutions to engage in specific virtual asset activities, provided they get prior approval from the Central Bank of Jordan.

Here is what banks are now allowed to do:

• Exchange Services: Banks can exchange virtual assets for fiat currency (like the Jordanian Dinar) and vice versa.
• Custodial Services: They can offer secure storage solutions for digital assets on behalf of clients.

However, there is a crucial restriction. Banks are not authorized to provide general transfer services for cryptocurrencies. This means a bank cannot simply act like a wire service sending Bitcoin from one wallet to another without going through their own exchange or custodial mechanisms. This limitation serves as a monetary policy safeguard. It ensures that virtual asset activities remain linked to the existing banking infrastructure and the Jordanian Dinar, preventing the emergence of a parallel "crypto-only" economy that could destabilize national monetary controls.

Licensing Requirements for Virtual Asset Service Providers (VASPs)

If you aren't a bank, how do you legally operate in this space? You become a Virtual Asset Service Provider (VASP) is a licensed entity authorized to facilitate transactions, custody, or exchange of virtual assets. Law No. 14 establishes clear pathways for obtaining this license, but the bar is high.

VASPs must meet rigorous standards comparable to traditional financial institutions. Key requirements include:

1. Comprehensive KYC Procedures: You must implement robust Know Your Customer protocols to verify the identity of every user.
2. Enhanced Due Diligence: High-risk transactions require deeper investigation and documentation.
3. Suspicious Activity Reporting: VASPs are legally obligated to report any suspicious transactions to the relevant authorities immediately.
4. Regular Audits: Companies must undergo frequent compliance audits to ensure they are following all anti-money laundering (AML) and counter-terrorism financing (CTF) rules.

This framework closes the gap that previously existed. Before 2025, anyone could set up a Telegram group and start trading crypto with no oversight. Now, operating without a license is a serious criminal offense.

Who Regulates What? The Multi-Agency Approach

Jordan did not give one agency sole control over crypto. Instead, Law No. 14 distributes oversight across several bodies to ensure comprehensive coverage. This multi-agency approach reflects the complexity of digital assets, which touch on monetary policy, securities law, and crime prevention.

• Central Bank of Jordan (CBJ): Handles monetary policy aspects and approves banking sector involvement. Deputy Governor Ziad Ghanma played a key role in Senate approvals, signaling high-level commitment.
• Jordan Securities Commission (JSC): Oversees the investment dimensions of virtual assets, ensuring that crypto products marketed as investments comply with securities laws.
• Anti-Money Laundering Unit: Ensures that all VASPs and banks adhere to strict AML and CTF protocols. Samia Al-Sharif, head of this unit, was involved in the legislative discussions.
• Ministerial Committee: Headed by the Minister of Digital Economy and Entrepreneurship, this committee coordinates policy implementation across government departments.

This structure prevents regulatory arbitrage, where companies might try to exploit gaps between different agencies. It also ensures that consumer protection is prioritized from multiple angles.

Severe Penalties for Non-Compliance

The most dramatic change under Law No. 14 is the introduction of criminal liability. Article 15 of the law sets out harsh penalties for those who ignore the new rules. If you engage in virtual asset activities without a proper license, the consequences are severe:

• Imprisonment: At least one year in prison.
• Fines: Between 50,000 and 100,000 Jordanian Dinars (approximately $70,000 to $140,000 USD).
• Closure: Authorities can shut down your business premises.
• Confiscation: All equipment used for illegal operations will be seized.

This marks a sharp pivot from the past. Informal buying and selling of cryptocurrencies, once common among individuals via social media, now carries serious criminal risk. While some ambiguity remains regarding whether individual users facing unlicensed services are liable, facilitating these exchanges is definitely an offense. Businesses and entrepreneurs must take this seriously. There is no gray area for operators anymore.

Jordan’s Regional Standing and Future Outlook

How does Jordan compare to its neighbors? Many MENA countries, including Kuwait, Egypt, and Iraq, continue to prohibit virtual assets entirely. By enacting Law No. 14, Jordan has positioned itself as a leader in regulated digital finance in the region. While the UAE has a more mature ecosystem with hundreds of thousands of daily traders, Jordan’s move is significant because it balances innovation with strict compliance.

A key factor boosting Jordan’s credibility is its removal from the Financial Action Task Force (FATF) grey list in October 2023. Achieving "Compliant" or "Largely Compliant" ratings on 32 of 40 FATF recommendations demonstrated that Jordan has robust frameworks for combating money laundering. This international recognition makes the new crypto regulations more credible to global investors and partners.

Looking ahead, the challenge lies in integration. Traditional financial institutions need to learn blockchain technology and digital wallet management while adhering to strict rules. The FinTech Regulatory Sandbox, active since 2018, will likely play a bigger role in testing new applications. For businesses, the message is clear: the wild west of crypto is over. The era of compliant, licensed, and secure digital asset services has begun in Jordan.