Balancing innovation and security

A framework for regulating cryptocurrency in Jordan

cryptocurrencis logos  lower house
(File photo: Jordan News)
cryptocurrencis logos  lower house

Hamza Alakaleek

Hamza Alakaleek has graduate degrees in International Political Economy and International Business Law from Yarmouk University and University de Montreal with focus in Internet of Things, Artificial Intelligence and Data Protection.

In Jordan, cryptocurrency exchange has spiked as Jordanians have begun trading via the digital transactions. With the rise of Bitcoin and other digital currencies, governments around the world are grappling with how to regulate this new form of money. Jordan is no exception. The Kingdom should institute a proposal for national legal guidelines for cryptocurrency exchange.اضافة اعلان

The proposed guidelines would aim to clarify how cryptocurrencies should be addressed under Jordanian law. They would cover a range of issues, including taxation, licensing requirements or overseeing cryptocurrency exchanges, and anti-money laundering measures.

Exchanges, policies One of the key aspects of such guidelines is that they would require all cryptocurrency exchanges operating in Jordan to be overviewed by a regulatory body. This would help to ensure that exchanges are operating in a transparent and secure manner and would give investors and individuals greater confidence in using them.
Guidelines… would require all cryptocurrency exchanges operating in Jordan to be overviewed by a regulatory body. This would help to ensure that exchanges are operating in a transparent and secure manner
Another important element of the guidelines should be anti-money laundering measures. Cryptocurrencies have been criticized by some for their potential use in illegal activities such as money laundering and terrorism financing. Therefore, cryptocurrency exchanges in Jordan should implement strict Know Your Customer (KYC) and Anti-Money Laundering (AML) policies, including customer identification and transaction monitoring.

Regulatory body, taxation The government or the Association of Banks in Jordan should establish a regulatory body or a department to oversee cryptocurrency trading activities in the Kingdom. One of the key duties of this body would be to provide clear guidelines on the use of cryptocurrencies for businesses and individuals in Jordan. Also, this department should produce regular reports about cryptocurrency exchanges and establish penalties for any illegal activities related to cryptocurrency trading, such as money laundering or fraud.
Under current Jordanian law, cryptocurrencies are not recognized as legal tender and are not subject to taxation.
In addition to these measures, the guidelines may also address taxation issues related to cryptocurrencies. Under current Jordanian law, cryptocurrencies are not recognized as legal tender and are not subject to taxation. However, the proposed guidelines would change this by requiring individuals and businesses that use cryptocurrencies to pay taxes on any gains they make from trading or investing in them.

Overall, these proposed legal guidelines for cryptocurrency in Jordan represent an important step forward in overseeing this new form of money. By clarifying how cryptocurrencies should be treated under Jordanian law, these guidelines will help to promote greater transparency and security in the cryptocurrency market. While there may be some challenges associated with implementing these guidelines, they represent an important step forward for both justice system and regulators alike.


Hamza Alakaleek has graduate degrees in International Political Economy and International Business Law from Yarmouk University and University de Montreal with a focus on the internet of things, artificial intelligence, and data protection.


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