Three Arab countries now have formal crypto regulatory frameworks: the UAE, Bahrain, and Jordan. Each took a different path, but they share the same destination — structured oversight of virtual asset services. Here’s how Jordan’s new Virtual Assets Law stacks up against its regional peers.
For Jordanian crypto users and businesses, understanding where Jordan sits in this regional picture matters. It affects which platforms can operate, what protections you have, and how the market will develop.
The Three Frameworks at a Glance
| UAE (Dubai) | Bahrain | Jordan | |
|---|---|---|---|
| Framework | VARA Regulations | CBB Crypto-Asset Module | Law No. 14 of 2025 |
| Regulator | Virtual Assets Regulatory Authority | Central Bank of Bahrain | Jordan Securities Commission |
| Year enacted | 2022 | 2019 | 2025 |
| License types | 7 activity-specific | Single regime, multiple categories | VASP license under JSC |
| Approach | Comprehensive, activity-based | Banking-integrated | Securities-commission-led |
| Bank path | Separate from VARA | Integrated with CBB | CBJ approval for banks |
UAE: The Regional Pioneer
The UAE — specifically Dubai — established the most comprehensive crypto regulatory framework in the Arab world with the creation of VARA (Virtual Assets Regulatory Authority) in 2022.
Key features:
- Seven distinct activity types requiring separate licenses: exchange, broker-dealer, custody, lending, payments, transfer, and advisory
- Dedicated regulator (VARA) focused exclusively on virtual assets
- Abu Dhabi’s parallel framework through the ADGM Financial Services Regulatory Authority
- Aggressive licensing: Major global platforms (Binance, OKX, Bybit) have obtained UAE licenses
What Jordan can learn: The UAE proved that regulation attracts legitimate businesses rather than driving them away. Dubai’s crypto ecosystem grew dramatically after VARA was established.
Bahrain: Banking-First Integration
Bahrain was actually the first Gulf state to create a formal crypto framework, with the Central Bank of Bahrain (CBB) introducing its Crypto-Asset Module in 2019.
Key features:
- Central bank-led regulation — crypto is regulated by the same body that oversees banks
- Integrated with existing financial regulation rather than creating a separate authority
- Rain Financial became the first licensed crypto exchange in the region under this framework
- Sandbox approach allowing graduated compliance
What Jordan can learn: Bahrain showed that a smaller market can move first and attract regional crypto businesses. Rain, initially licensed in Bahrain, expanded across the region.
Jordan: Securities Commission Approach
Jordan’s Law No. 14 of 2025 takes a different but equally valid approach, assigning virtual asset oversight to the Jordan Securities Commission (JSC).
Key features:
- JSC as primary regulator — leverages existing securities regulation expertise
- VASP licensing regime with published regulations and electronic application process
- Dual path: JSC for VASPs, CBJ approval for banks wanting to offer virtual asset services
- FATF-aligned: Designed to meet international AML/CFT standards for virtual assets
Jordan’s advantages:
- CliQ infrastructure: Jordan’s instant payment system (CliQ) provides a ready-made, regulated fiat rail that platforms can build on — something neither the UAE nor Bahrain had at the same maturity level when they launched their frameworks
- eFAWATEERcom integration: Jordan’s national bill payment system adds another regulated payment channel
- Smaller, focused market: Jordan can move faster on licensing decisions than the UAE, which has hundreds of applications in queue
What This Means for Jordanian Users
Legitimacy signal
Jordan joining the UAE and Bahrain in having formal crypto regulation sends a clear signal: virtual assets are here to stay in the region, and governments are choosing oversight over prohibition.
Platform accountability
With a licensing framework in place, you can now hold platforms accountable. The JSC will publish licensed provider names, giving you a simple way to verify any platform’s status.
Regional interoperability
As more Arab countries adopt FATF-aligned VASP frameworks, cross-border crypto services may become easier. A Jordanian VASP licensed by the JSC will have more credibility with UAE or Bahraini regulators than an unlicensed operator.
Where vexjo Fits
vexjo has operated as a USDT OTC exchange in Jordan since 2019 — before any of these regulatory frameworks existed in Jordan. We built our platform around Jordan’s banking infrastructure (CliQ and eFAWATEERcom), with KYC, AML-conscious design, and full audit trails from day one.
When Law No. 14 of 2025 was enacted, we applied for a VASP license immediately (ref. VASP-20260328-25). We didn’t need to retrofit compliance — we needed to formalize what we were already doing.
This is the difference between platforms that were built for regulation and those that will struggle to adapt to it.
The Regional Trajectory
The direction is clear across the Arab world:
- 2019: Bahrain launches CBB Crypto-Asset Module
- 2022: UAE launches VARA in Dubai
- 2025: Jordan enacts Law No. 14 of 2025
- Next: Saudi Arabia and Egypt are developing their own frameworks
Every major Arab economy is moving toward structured crypto regulation. Jordan is now part of this movement, not watching from the sidelines.
For Jordanian crypto users, this is unambiguously good news. Regulation means safer platforms, better protections, and a market that grows sustainably rather than in the shadows.
vexjo is a USDT OTC exchange serving Jordan since 2019. VASP license application ref. VASP-20260328-25. Start trading at vexjo.com