Jordan Approves Virtual Asset Framework to Boost Digital Economy

Highlights:

• Jordan approves a virtual asset regulatory framework within a year to strengthen its digital economy.  
• A ministerial committee will oversee governance and regulatory processes for virtual assets.  
• The framework aims to ensure FATF compliance and attract foreign investments. 

The Cabinet of Jordan, headed by Prime Minister Jafar Hassan, has given its nod to the proposed virtual asset regulation framework. According to the report, this proposal seeks to provide a governance framework for digital assets in one year. The decision comes amid efforts by the Jordanian monarchs, King Abdullah II and Crown Prince Al Hussein, to advance the financial technology sector.

The Jordan Securities Commission will create the legal and technical requirements for the management of virtual assets in trading. This includes regulating the global trading platforms and establishing the standard procedures of operations. A preliminary assessment done by the JSC pointed to the importance of a strong legal framework aligned with international standards. In addition, the study focused on fighting financial crimes and promoting governance.

The framework is consistent with the Economic Modernization Vision based on innovation and the adoption of advanced technology. The government intends to establish a safe environment for foreign investment while providing opportunities for local investors.

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Crypto trading platforms will need licenses—with oversight from a stacked ministerial squad,… pic.twitter.com/5UwWqqLH2S

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Ministerial Committee to Lead Implementation

A ministerial committee will be responsible for the regulation process. It is headed by the Minister of Digital Economy and Entrepreneurship and consists of representatives of the Central Bank, JSC, and the National Cybersecurity Center. The committee will deliberate on issues, provide recommendations on the structures that govern the market, and protect investors.  

The framework will focus on countermeasures against money laundering and compliance with the FATF recommendations. Cybersecurity will also safeguard data and other forms of digital property. In order to encourage confidence and investment, the government has made efforts to enhance the transparency of regulation.  

In addition to overseeing virtual assets, the initiative will also work to adopt blockchain into government services. The blockchain strategy for 2025 targets improving the efficiency, openness,s and credibility of the public administration. Authorities believe that the strategy will enhance innovation in areas such as education, health, and the business world.  

Jordanian government approves Blockchain strategy for 2025 #Jordan #government #MOEE #MinistryofEconomy #Blockchain #strategy @MoDEEJO #MENA https://t.co/FCNsBMwtgn

— lara Abdul Malak laraontheBlock (@larissa74leb) December 26, 2024

Regional and Global Competitiveness

This decision lets Jordan follow the same path as countries such as the UAE, Bahrain, Turkey, and Japan in regulating virtual assets. These nations have shown that a controlled digital asset market can be profitable. Jordan’s decision to approve the blockchain strategy and the virtual asset regulations place the country in a better position in the FinTech market.  

In 2023, the Financial Action Task Force (FATF) put Jordan on the grey list because of the virtual asset risks. These new regulation measures seek to solve these challenges and enhance compliance with the international AML/CFT standards. Officials believe that this will improve Jordan’s financial status and boost the economy.

The government considers these moves as crucial for fostering local entrepreneurship. Currently, 1.5% of Jordanians have invested in cryptocurrencies, and the new framework aims to foster further investment in the country. Jordan considers virtual assets as one of the strategies for the transformation of its economy. This initiative aims to promote innovation and governance in compliance with international standards.