Jordan takes significant step in fintech sector
Date
1/28/2025 6:27:20 AM
(MENAFN) Jordan has taken a significant step in the fintech sector by approving a comprehensive legal and regulatory framework for virtual and digital assets. Economists predict that this move will attract investment in the sector, creating opportunities for economic growth. Experts believe it will also help establish Jordan as a prominent destination for digital asset innovation. Despite this new legal framework, trading in digital currencies remains prohibited in Jordan, according to Article (10/A.12) of the Instructions Regulating Dealing in Foreign Exchanges. This article prohibits dealing with digital currencies or using them for payment or investment purposes.
In response to the rapid changes in the global banking landscape, especially with the rise of virtual and digital assets, the Council of Ministers, led by Prime Minister Jaafar Hassan, has authorized the development of a clear governance framework for these assets. This initiative aims to create opportunities for Jordanian youth to engage in the growing digital economy. The definition of digital assets, as outlined by the Association of Jordanian Banks, includes digital content (e.g., websites, applications), digital currencies like Bitcoin, and central bank-issued digital currencies. Virtual assets are a subset of digital assets and include cryptocurrencies, tokens, and virtual properties traded via blockchain technology, such as those in the metaverse.
The Cabinet has instructed the Jordan Securities Commission (JSC) to set the necessary conditions and requirements for entities seeking to engage in virtual asset activities. This includes preparing legal, procedural, and technical arrangements for licensing global trading platforms for virtual assets, with a completion timeline of one year. Experts see this as a timely decision, aligning with the global shift toward blockchain and cryptocurrency adoption. The initiative also complements the Supreme Council for Future Technology’s goal of advancing Jordan’s digital economy for the benefit of the national economy.
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