The Securities and Exchange Commission of Pakistan (SECP) has issued new rules and requirements for undertaking Digital Asset Management Services (DAMS) in the country, aimed at providing a clear regulatory framework for Digital Asset Management Companies (Digital AMCs). This step is seen as a key development in promoting transparency, accountability, and innovation in Pakistan’s growing digital financial sector.
Under the newly issued S.R.O. 1438(I)/2025, the SECP has amended the Non-Banking Finance Companies and Notified Entities Regulations, 2008, to include provisions specific to Digital AMCs. The regulations define a “Digital Platform” as any tool, application, software, or solution that uses digital or IT-based channels as the primary interface between the Digital AMC, investors or unitholders, and other parties involved in DAMS operations. This includes mobile applications, web portals, internet-based channels, digital distribution and aggregation platforms, as well as other supporting digital solutions.
The rules apply to all Digital AMCs that offer DAMS through digital platforms, whether administered, managed, or owned by the AMC. Any Fund Management NBFC wishing to engage in DAMS must explicitly state its intention to obtain a license for such services in Form-II of the NBFC Rules, in addition to complying with existing licensing requirements under Rule 4 and Rule 5 of the NBFC regulations.
Upon submission, the SECP may grant a conditional Asset Management Services (AMS) license, restricting the AMC to provide DAMS exclusively through digital platforms. This licensing approach ensures that Digital AMCs operate in a controlled and monitored environment, promoting investor protection while supporting the development of Pakistan’s digital financial infrastructure.
A critical requirement for approval is the submission of a comprehensive business plan and financial projections covering at least five years from the commencement of operations. The business plan must include key aspects of the proposed DAMS, financial assumptions, operational processes, risk management strategies, and compliance measures. This ensures that only well-prepared and viable entities enter the digital asset management sector.
Furthermore, Digital AMCs are required to adhere to all applicable rules, circulars, and directives for conventional AMCs under NBFC regulations unless specifically modified or relaxed by the new provisions. This alignment ensures consistency in regulatory oversight while accommodating the unique nature of digital platforms and services.
SECP’s move is expected to accelerate the growth of Pakistan’s digital financial ecosystem by creating clear operational and compliance standards for Digital AMCs. By formalizing requirements for digital platforms, the regulator aims to enhance investor confidence, promote innovation, and strengthen the overall governance of asset management services in the country.
These regulations mark a significant milestone in Pakistan’s fintech landscape, as they provide a structured pathway for digital asset management operations while safeguarding the interests of investors and aligning with global best practices in digital finance.
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