Jordan has announced plans to create a virtual asset framework by the end of the year. The government, represented by its cabinet, has approved the creation of the regulatory framework, which should go live before the end of the year. According to the press release, the country wants to foster a robust digital economy, aligning it with global standards.
According to reports, the King of Jordan Abdullah II, has mandated the tasks to the National Council of Future Technology as well as the Jordanian Securities Commission (JSC). The bodies will be charged to work on defining the requirements for entities using digital assets. The commission will also be charged with developing the legal and technological infrastructure in addition to licensing and regulation of crypto trading platforms.
Jordan placed on the FATF grey list due to virtual asset risks
Jordan was placed on the FATF grey list in February 2023 because of the risks associated with virtual assets. According to the FATF, it was placed on the list for failing to address deficiencies including “completing and disseminating the money laundering and terrorist financing risk assessments of legal persons and virtual assets.”
According to a report from Triple A in 2023, it was discovered that only about 1.5% of residents in Jordan owned crypto, up from 1.25% in 2022. The recent development signifies the intention of the government to comply with the recommendations made by the FATF.
Blockchain strategy for 2025 receives approval
In a meeting in December 2024, the Council of Ministers in Jordan approved the country’s Blockchain strategy for 2025. The strategy will improve security, competency, and governmental services. According to the announcement, using Blockchain will help improve transparency and integrity. Also, the privacy of data belonging to residents will be increased.
The Blockchain strategy will also increase the country’s digitization efforts, help administrative efforts, and save time and costs, among other benefits. The government of Jordan will also use the technology to enhance innovation across sectors in the country. The strategy will be designed to help the economic vision of Jordan, which has innovation in the telecom and IT sector at its heart.