The rise of cryptocurrency, particularly Bitcoin and other digital
currencies, has been a hot topic in the financial world for quite some time
now. And the missing guidance on how the Jordanian Justice System should deal
with and handle this rising phenomenon is an important topic to discuss, especially
with many individuals in Jordan trading in this kind of currency.
اضافة اعلان
Globally, governments have been grappling with how to overview this
new form of money. Jordan is no exception and should have a proposal for legal
guidelines for cryptocurrency in the country.
The proposed guidelines should clarify how cryptocurrencies would
be treated under Jordanian law, covering a wide range, including taxation,
licensing requirements or overseeing cryptocurrency exchanges, and anti-money
laundering measures.
One of the key aspects of the proposed guidelines is that they
would require all cryptocurrency exchanges operating in Jordan to be overseen
by a regulatory body. This would ensure these exchanges work transparently and
securely, giving investors and individuals greater confidence. Additionally,
all cryptocurrency transactions should be subject to taxation.
The proposed guidelines should clarify how cryptocurrencies would be treated under Jordanian law, covering a wide range, including taxation, licensing requirements or overseeing cryptocurrency exchanges, and anti-money laundering measures.
Another important aspect of the proposal is its focus on anti-money
laundering measures. Some have criticized cryptocurrencies for their potential
use in illegal activities such as money laundering and terrorism financing.
Therefore, Cryptocurrency exchanges should implement strict Know Your Customer
and Anti-Money Laundering policies. The proposal of the legal guidelines would
require cryptocurrency exchanges to implement robust anti-money laundering
procedures, including customer identification and transaction monitoring.
The Jordanian government or the Association of Banks in Jordan
should establish a regulatory body or a department in its hierarchy to oversee
cryptocurrency trading activities in Jordan. One of the key duties of this body
is to provide clear guidelines on the use of cryptocurrencies for businesses
and individuals in Jordan. Also, this department should provide regular reports
about cryptocurrency exchanges. The government should work with international
organizations and other governments to develop best practices for regulating
cryptocurrency trading. Furthermore, the regulatory authority should establish
penalties for any illegal activities related to cryptocurrency trading, such as
money laundering or fraud.
Under current Jordanian law, cryptocurrencies are not recognized as legal tender and are not subject to taxation.
In addition to these measures, the guidelines may also address
taxation issues related to cryptocurrencies. Under current Jordanian law,
cryptocurrencies are not recognized as legal tender and are not subject to
taxation. However, the proposed guidelines would change this by requiring
individuals and businesses that use cryptocurrencies to pay taxes on any gains
they make from trading or investing in them.
Overall, the legal proposal guidelines for cryptocurrency in Jordan
represent an important step forward in overseeing this new form of money. By
providing clarity on how cryptocurrencies should be treated under Jordanian
law, these guidelines will help to promote greater transparency and security in
the cryptocurrency market. While some challenges may be associated with
implementing these guidelines, they represent an important step forward for
both Justice System and regulators.
Hamza Alakaleek has graduate degrees in International Political Economy
and International Business Law from Yarmouk University and University de
Montreal with focus in Internet of Things, Artificial Intelligence and Data
Protection.
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