Regulatory Alerts2021-11-16
Added · Updated
Central Bank of Jordan Circular on the Prohibition of Virtual Currencies and Assets
The Central Bank of Jordan reiterates the prohibition on dealing with all types of virtual currencies and assets for all entities under its supervision, including the insurance sector and future regulated entities. The ban covers specific activities such as exchanging virtual assets for fiat currency, transferring virtual assets, storing or managing them, participating in their issuance or sale, dealing in related futures or funds, and opening client accounts for these transactions. This directive confirms the continued validity of previous circulars from 2014, 2018, and 2019 regarding this prohibition.
In the Name of Allah, the Most Gracious, the Most Merciful
[Logo of the Central Bank of Jordan]
Reference No.: 1784/1/1 Date: 6 Rabi' al-Thani 1442 AH Corresponding to: November 21, 2020 AD
Circular to all entities subject to the supervision and oversight of the Central Bank of Jordan
Greetings,
With reference to our circulars No. 2451/5/1/1 dated 20/02/2014, No. 3777/3/10 dated 14/03/2018, and No. 16361/4/27 dated 24/11/2019, regarding the prohibition of virtual currencies/assets; where virtual currencies/assets are defined as a digital representation of value that can be traded digitally or transferred and can be used for payment and investment purposes, and this does not include the digital representation of paper currencies, securities, and other currencies and financial assets issued or regulated by the Central Bank or any other authority within Jordan. Examples of these virtual currencies/assets include (Bitcoin, Litecoin, Ethereum, Ripple, and Dashcoin).
Accordingly, we request confirmation of the continued validity of the prohibition on dealing with all types of virtual currencies/assets for all entities subject to the supervision and oversight of the Central Bank of Jordan, including the insurance sector, as well as any entity that will be subject to the supervision and oversight of the Central Bank of Jordan in the future, whether directly or indirectly, including the following:
- Exchange between virtual currencies/assets and paper currencies.
- Exchange between one type or several types of virtual currencies/assets.
- Transfer of virtual currencies/assets, whereby a virtual currency/asset is transferred from a virtual currency/asset address or from an account to another.
- Storage and/or management of virtual currencies/assets or tools that enable control over them.
- Participation and providing financial services related to the offering of one or more issuers and/or the sale of virtual currencies/assets.
- Dealing in virtual currencies/assets via futures contracts or investing in investment funds or index funds related to them.
- Opening accounts for your clients to deal in them or sending or receiving remittances against them or for the purpose of buying or selling them.
Please accept our highest respect,
Governor Dr. Ziad Fariz