Jordan joins global push for digital asset regulation

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Jordan has launched an initiative to establish a comprehensive regulatory framework for digital assets just weeks after announcing an ambitious blockchain roadmap.

Prime Minister Jafar Hassan chaired a recent Cabinet meeting focused on emerging technologies, which approved a plan to establish the framework. Jordan aims to align its framework with global digital asset standards to boost the country’s digital economy, the state-owned Jordan News Agency reported.

Hassan tasked the country’s securities watchdog with developing the requirements for virtual asset service providers (VASPs) operating in the Middle Eastern nation. The Jordan Securities Commission (JSC) will also develop a licensing framework and oversee the issuance of licenses to qualified applicants. The commission has previously conducted a national study that concluded Jordanian investors need a regulatory framework to protect them from rogue operators.

The Prime Minister further appointed a committee to oversee the formulation of the framework, chaired by the country’s Minister of Digital Economy and Entrepreneurship, with officials from the central bank, the securities commission, the National Cybersecurity Center, and other key stakeholders as some of the members.

The framework will be the latest effort in Jordan’s Economic Modernization Vision, which aims to create an enabling environment for the adoption of emerging technologies. With digital assets becoming one of the fastest-growing tech sectors, the Prime Minister believes regulating the industry will allow Jordan to compete with other global hubs and attract investment.

The push for digital asset regulation comes just weeks after the country’s Council of Ministers approved a plan to integrate blockchain into public service operations. The council believes blockchain can rid the country of bureaucracy, corruption, and inefficiency. Experts say Jordan can save up to $5 billion by integrating blockchain into government operations. The move followed the launch of a national blockchain network in 2024.

Jordan joins other Middle Eastern nations in pushing for blockchain and digital asset adoption. The region received $338 billion in the year ending June 2024, accounting for 7.5% of all global digital asset transaction volume, Chainalysis revealed. Turkey remains the regional digital asset leader, ranking 11th for adoption globally. The United Arab Emirates and Saudi Arabia recorded the highest growth in adoption.

However, the region lags behind Asia and Europe in digital asset regulations, giving Jordan a prime opportunity to break away and establish itself as the first with a comprehensive framework.

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