The decision is in line with the tasks and programmes of the Future Technology Council, which His Majesty the King directed to be formed and which is directly monitored by His Highness the Crown Prince.
* The decision comes to keep pace with the changes witnessed by the banking world, which constitute an opportunity for creative Jordanian youth to engage in the digital economy.
* The Council of Ministers assigns the Securities and Exchange Commission to determine the requirements, conditions and controls for entities wishing to deal in virtual and digital assets, and the legal, procedural and technical arrangements for licensing and approving global trading platforms for them.
* A committee comprising the Ministry of Digital Economy, the Central Bank, the Securities Commission, and a number of relevant authorities to establish the regulatory legal framework and controls to ensure governance.
* Dealing in virtual and digital assets provides broad opportunities for growth, leadership, and contribution to achieving national economic goals represented in attracting investment and providing opportunities for Jordanians, similar to many countries in the world that have succeeded in this sector.
* The move to regulate dealing in virtual and digital assets comes within the drivers of the economic modernization vision, which focuses on providing an environment conducive to the advancement of modern technologies and encouraging innovation in various sectors.
* The trend reflects the Kingdom’s vision to enhance the digital economy by enabling virtual assets to grow within a safe legal and regulatory environment.
* Regulating all aspects related to virtual assets and developing a flexible regulatory infrastructure that encourages start-ups to provide innovative solutions that contribute to enhancing the Kingdom’s competitiveness in the financial technology market.
Amman, January 26 (Petra) - The Council of Ministers decided in its session held today, Sunday, headed by Prime Minister Dr. Jaafar Hassan, to approve the establishment of a comprehensive legal regulatory framework according to clear governance for dealing with virtual and digital assets within a year.
The decision is in line with the tasks and programmes of the Future Technology Council, which His Majesty King Abdullah II, the Prime Minister, directed to form, and which is directly monitored by His Royal Highness Crown Prince Al Hussein bin Abdullah II.
The decision comes in line with the changes witnessed by the banking world, most notably the entry of virtual and digital assets, which constitute an opportunity for creative Jordanian youth to engage in the digital economy, especially since among the best digital currency and virtual asset platforms in the region were founded by Jordanians.
Accordingly, the Council of Ministers has tasked the Securities and Exchange Commission with taking the necessary measures to determine the requirements and conditions for entities wishing to deal in virtual assets, and to develop and prepare the necessary legal, procedural and technical arrangements to license and approve global trading platforms for virtual assets, with these procedures to be completed within a year.
The Council of Ministers had formed a committee over the past months to begin studying the provision of a legislative umbrella to regulate the issue of digital platforms and trading in virtual assets in the Kingdom, taking into account all relevant technical, legal and governance aspects.
The committee was formed under the chairmanship of the Minister of Digital Economy and Entrepreneurship, and the membership of: the Governor of the Central Bank, the Chairman of the Board of Commissioners of the Securities Commission, the Director General of the Income and Sales Tax Department, the Head of the National Cybersecurity Center, and a representative of the General Intelligence Department.
The Council of Ministers tasked the committee with taking the necessary measures to overcome all challenges facing the implementation of the trend to regulate the virtual and digital assets sector, in accordance with the provisions of the applicable legislation, and to establish a properly regulated legal framework and controls that ensure governance.
The Board of Commissioners of the Securities Commission also conducted a preliminary study to determine the technical, technological, financial, human and legislative requirements to regulate the activities of virtual and digital asset trading platforms. The preliminary study concluded that there is a need to create a regulatory framework for governing virtual asset trading in line with international standards for financial markets and combating financial crimes, by preparing legislation dedicated to this purpose, drawing on the experiences of countries that have succeeded in this framework and global best practices.
Dealing in virtual and digital assets is considered one of the most prominent developments in the digital economic world, which will provide wide opportunities for growth and leadership worldwide.
The implementation of these digital economic activities in Jordan provides an opportunity to enter this digital economic world and achieve the gains associated with it, and thus contribute to achieving the national economic goals represented in attracting investments and providing opportunities for Jordanian entrepreneurs, similar to many countries in the world that have succeeded in this matter, such as: the United Arab Emirates, the Kingdom of Bahrain, Turkey, the United States of America, many European countries, Japan, and others.
This framework comes within the drivers of the Economic Modernization Vision, which focuses on providing an enabling environment for the advancement of modern technologies and encouraging innovation in various sectors, including the financial technology sector.
The move to regulate dealing in virtual and digital assets and establish a regulatory framework for them reflects the Kingdom’s vision to enhance the digital economy by enabling virtual assets to grow within a safe legal and regulatory environment that is compatible with international standards. It also aims to support innovation, achieve transparency, protect investors, and control risks associated with these assets, such as money laundering, in line with the recommendations of the Financial Action Task Force (FATF).
The framework to be developed includes regulating all aspects related to virtual and digital assets, and focuses on developing a flexible regulatory infrastructure that encourages start-ups to provide innovative solutions that contribute to enhancing the Kingdom’s competitiveness in the financial technology market at the regional and global levels, and also ensures the application of advanced technologies to protect users’ data and assets from cyber attacks.
The framework aims to enhance Jordan’s position in the field of financial technology (FinTech), making it an attractive destination for investments and leading companies in this field, in addition to enabling the Kingdom to benefit from the enormous potential provided by virtual assets, which contributes to supporting sustainable economic growth and enhancing integration with the global economy.