Jordan Crypto Trading Under Banking Restrictions: How It Worked

Jordan Crypto Trading Under Banking Restrictions: How It Worked

When we talk about Jordan is a Middle Eastern nation of roughly 11 million people, the crypto scene has been anything but straightforward. For years the Central Bank of Jordan (CBJ) banned any use of digital coins within the formal banking system, leaving eager investors to carve out an underground network. This article unpacks exactly how Jordanians managed to trade crypto despite those strict banking restrictions, what risks they faced, and how the 2025 Virtual Assets Transactions Regulation Law finally turned the tide.

TL;DR

• Jordan’s banking rules barred crypto, so users turned to unregulated Jordan crypto trading via peer‑to‑peer (P2P) channels.
• Typical work‑arounds included Telegram groups, cash‑in‑person handovers, VPN‑based foreign exchanges, and stablecoin swaps.
• Risks were high: fraud, account freezes, and legal gray areas.
• In September 2025 the Virtual Assets Transactions Regulation Law created a licensed framework overseen by the Jordan Securities Commission.
• Today Jordanians can trade on regulated exchanges, use crypto‑payment providers, or keep assets in compliant custodial services.

Why the Central Bank Said No

The Central Bank of Jordan (CBJ) issued a series of warnings that labeled cryptocurrencies as “high‑risk” and expressly prohibited their use inside the Jordanian financial system. The rationale was simple: without a clear legal framework, crypto could threaten monetary stability, facilitate money‑laundering, and expose banks to volatile assets. As a result, Jordanian banks refused to process any crypto‑related transfers, blocked card payments to known exchanges, and froze accounts that showed signs of crypto activity.

The Rise of the Underground P2P Market

Faced with a closed banking door, Jordanians discovered the only viable route: a peer‑to‑peer (P2P) marketplace. The Peer-to-Peer (P2P) market operates on the principle of direct buyer‑seller connection, bypassing banks altogether. Most transactions moved through private Telegram channels, WhatsApp groups, or local forums where users posted offers like “sell 0.5 BTC for 2,200 JOD - cash in Amman”.

Key steps in a typical P2P trade were:

1. Find a reputable seller via a vetted group or recommendation.
2. Agree on price, usually pegged to an international exchange rate.
3. Exchange cash for a QR‑code or wallet address in person.
4. Confirm receipt of funds on the blockchain and hand over the cash.

Because the whole process happened offline, there was no paper trail for banks or regulators, making it the go‑to method for anyone wanting to buy Bitcoin, Ethereum, or even stablecoins like USDT.

Tools, Platforms, and Work‑arounds

While P2P was the backbone, many Jordanians also used foreign crypto platforms. Users would first acquire a VPN to mask their IP, then sign up for services such as Binance, KuCoin, or Kraken. After completing KYC in a different jurisdiction (often Turkey or the UAE), they could fund the exchange with a credit card from a non‑Jordanian bank, or by converting cash to a peer‑to‑peer stablecoin and moving it to the exchange wallet.

Another clever hack involved using stablecoins as a bridge. Since stablecoins are pegged to fiat currencies, traders could receive USDT from a foreign exchange, then hand‑off the USDT to a local P2P seller who would convert it back to JOD cash. This method reduced price volatility and gave both parties a clear, auditable on‑chain record.

Real‑World Story: The CoinMENA Experience

CoinMENA was founded by Jordanian entrepreneur Talal Tabbaa. Before the 2025 law, Tabbaa and his team faced a stark choice: stay in Jordan and operate in the legal gray zone, or move abroad to launch a compliant exchange. They chose the latter, establishing the platform in the UAE where the regulatory environment was friendlier. The founder often recounts how, back in Amman, his closest friends were trading Bitcoin through “hand‑shake” deals on Telegram, while he was busy navigating cross‑border banking hurdles. This brain‑drain highlighted how restrictive policies forced local talent to look overseas for opportunity.

The Hidden Costs: Risks and Challenges

Operating outside the formal system came with a hefty price tag. Fraud was common: fake sellers would disappear after receiving cash, and buyers could receive wallets already flagged for illicit activity. Without any regulatory oversight, there was no insurance or recourse if a trade went wrong.

Security risks also loomed large. Users stored private keys on mobile devices without hardware wallets, making them vulnerable to malware. Moreover, the CBJ’s occasional crackdown - freezing bank accounts that showed any crypto‑related transaction - deterred many from even attempting a trade.

Legal ambiguity added another layer of anxiety. While the law forbade banks from dealing with crypto, it did not criminalize holding or using digital assets outright, leaving participants in a murky “no‑law‑but‑not‑illegal” space.

The 2025 Virtual Assets Transactions Regulation Law: A Game Changer

On September 14, 2025, Jordan enacted Law No. 14 of 2025 - Virtual Assets Transactions Regulation Law. Published in the Official Gazette by King Abdullah II, the legislation defines a virtual asset as any digital representation of value that can be traded, transferred, or used for payment. It also introduces a licensing regime administered by the Jordan Securities Commission (JSC).

Key provisions include:

• Mandatory licensing for exchanges, custodians, and payment providers operating in Jordan.
• Requirement that licensed entities maintain a registered office in the country.
• Prohibition of promoting unlicensed virtual‑asset services.
• Clear compliance obligations such as AML/KYC and reporting to the JSC.

With this framework, the need for underground P2P trading diminishes, as Jordanians can now access regulated platforms without risking bank account freezes.

Side‑by‑Side: Pre‑2025 vs Post‑2025 Crypto Trading

How to Trade Crypto Legally in Jordan Today

If you’re a Jordanian looking to jump back into crypto, start with a licensed provider registered with the JSC. These platforms will usually require:

1. National ID verification (KYC).
2. Proof of residence in Jordan.
3. A bank account for fiat deposits - now allowed because the VASP holds a banking partnership.

Once verified, you can:

• Buy Bitcoin, Ethereum, or stablecoins directly with JOD.
• Use a crypto‑payment app to pay merchants who accept digital coins.
• Store assets in a custodial wallet offered by the exchange, or move them to a personal hardware wallet for extra security.

For those still wary of centralized services, the law also permits peer‑to‑peer trades **as long as both parties are licensed**. This means you can now post a sell offer on a regulated marketplace without fearing legal repercussions.

What Lies Ahead

The JSC is already drafting detailed guidelines on AML reporting, custodial insurance, and cross‑border token sales. Expect more local startups to launch as the licensing process becomes streamlined. In the meantime, the key takeaway is simple: you no longer need to hide your crypto activity behind VPNs or cash‑handovers. The regulated environment offers transparency, consumer protection, and a legitimate path for Jordanian innovators to stay home.