The Jordanian government has reportedly approved a comprehensive plan to establish a virtual assets framework by the end of 2025. This initiative, spearheaded by King Abdullah II, aims to align the nation with global financial standards and foster a robust digital economy.
The Cabinet’s decision comes as part of Jordan’s broader strategy to modernize its digital infrastructure and address concerns raised by the Financial Action Task Force (FATF). The framework will regulate virtual assets, improve legal infrastructure, and license crypto trading platforms. A ministerial committee, including officials from the Central Bank of Jordan and the Jordanian Securities Commission (JSC), has been assigned to oversee the implementation.
Jordan on FATF Grey List Due to Virtual Assets Risks
In February 2023, FATF placed Jordan on its grey list due to deficiencies in regulating virtual assets and money laundering risks. FATF urged Jordan to strengthen its framework by completing risk assessments for legal entities and virtual assets.
A report by Triple A in 2023 revealed that 1.5% of Jordanians owned cryptocurrency, up from 1.25% in 2022. Despite these challenges, the government’s recent efforts to comply with FATF recommendations highlight its commitment to improving financial transparency.
James Whitmore, a financial analyst at CryptoVision, stated, “Jordan’s move to develop a virtual assets framework is a clear signal to the international community that it is serious about addressing FATF concerns and embracing financial innovation.”
The comprehensive virtual assets framework will also ensure that risks associated with money laundering and terrorism financing are mitigated. This is a significant step in improving the country’s financial credibility and attracting global investment.
Jordan’s Blockchain Strategy for 2025
In December 2024, the Jordanian Council of Ministers approved a blockchain strategy aimed at transforming public services and ensuring data security. The strategy emphasizes transparency and privacy, focusing on financial, educational, and health data.
The blockchain plan aligns with Jordan’s economic vision to foster innovation, particularly in the telecommunications and IT sectors. It also aims to simplify administrative processes, reduce costs, and save time in government operations.
Minister of Digital Economy and Entrepreneurship Ahmad Hanandeh commented, “Blockchain technology will enhance Jordan’s competitiveness, drive innovation, and support startups and entrepreneurs in key economic sectors.”
The strategy’s primary goal is to integrate blockchain into governmental services, ensuring efficient and secure systems. This move is also expected to create opportunities for tech startups and entrepreneurs, making Jordan a regional leader in digital innovation.
National Council for Future Technology Takes the Lead
Under the leadership of King Abdullah II, the National Council for Future Technology and the Jordanian Securities Commission have been tasked with defining regulations for entities engaging in virtual assets. The JSC will focus on developing legal and technical infrastructure while also licensing and regulating cryptocurrency platforms.
The ministerial committee, chaired by the Minister of Digital Economy and Entrepreneurship, will play a crucial role in addressing challenges related to virtual assets. Members from the Central Bank of Jordan, the National Cybersecurity Center, and other key entities will collaborate to ensure smooth implementation of the framework.
By combining blockchain with regulatory reforms, Jordan aims to position itself as a leader in the digital economy. With this framework, the country hopes to build trust among international partners and attract foreign investment in its digital and financial sectors.
Conclusion: A Promising Future for Jordan’s Digital Economy
Jordan’s decision to create a virtual assets framework by the end of 2025 is a bold step towards modernizing its financial and technological sectors. With efforts to address FATF concerns and implement blockchain technology, the country is poised to become a key player in the global digital economy.
The framework will likely boost investor confidence and promote economic growth as the government prioritizes transparency, innovation, and data security. However, the successful implementation of this plan will depend on continued collaboration among stakeholders and adherence to international standards. Keep following Turkishnyradio and keep an eye on crypto updates and developments.
FAQs
- Why is Jordan creating a virtual assets framework?
Jordan aims to align with global standards, address FATF concerns, and foster a digital economy through better regulation and infrastructure for virtual assets.
- What is the role of blockchain in Jordan’s strategy?
Jordan’s blockchain strategy focuses on improving transparency, data privacy, and efficiency in governmental services while fostering innovation in the IT and telecom sectors.
- How does FATF’s grey list impact Jordan?
Being on FATF’s grey list highlights deficiencies in anti-money laundering and virtual asset regulations. Jordan’s new framework aims to address these issues and improve financial credibility.
- What entities are involved in the framework’s implementation?
The Jordanian Securities Commission, the Central Bank of Jordan, the National Cybersecurity Center, and the Minister of Digital Economy and Entrepreneurship will oversee the framework.
