Jordan to End Crypto Trading Ban and Introduce Regulatory Framework by Year-End

Jordan plans to lift its ban on crypto trading and introduce a formal regulatory framework for digital asset trading by the end of the year. The move follows a government decision to update its stance on cryptocurrencies, replacing previous blanket prohibitions with regulated market access. Authorities aim to protect investors, ensure market integrity and prevent illicit finance while enabling crypto businesses to operate under licensing, compliance and oversight measures. The framework is expected to set rules for exchanges, custodians, and service providers, including registration, anti-money laundering (AML) controls, know-your-customer (KYC) procedures and capital or solvency requirements. Officials have indicated coordination with regional and international standards to balance innovation with financial stability. Market participants and local crypto firms are preparing for licensing processes and compliance upgrades. Traders should watch for detailed regulations, licensing timelines, and any transitional measures that could affect liquidity, onshore trading volumes and foreign participation. Key short-term signals include announcements of licensing criteria, permitted asset lists, and whether fiat on/off ramps will be enabled, all of which can influence price action and exchange flows in Jordan’s market.
Bullish
Lifting a trading ban and introducing a clear regulatory framework is typically bullish for crypto markets in the affected jurisdiction. Regulation reduces legal uncertainty, enables onshore trading, encourages institutional and retail participation, and often brings improved liquidity and clearer fiat on/off ramps. Similar precedents include countries that formalized crypto rules, which saw increases in trading volume and local exchange listings. Short-term volatility is likely around rule announcements and licensing rollouts as traders price in new participation and any asset restrictions. Medium-to-long term, a predictable legal regime tends to support market growth, investment, and custody solutions, improving market depth and attracting foreign capital—positive for prices and adoption. Risks that could temper bullishness include overly strict capital requirements, restrictive asset lists, or delayed implementation that limit immediate market impact.