The Securities and Exchange Commission of Pakistan (SECP) has unveiled a comprehensive framework to regulate Digital Asset Management Services (DAMS), paving the way for the expansion of digital finance in the country. The regulator announced the new requirements through S.R.O. 1438 (I)/2025, amending the Non-Banking Finance Companies and Notified Entities Regulations, 2008.
The move is part of SECP’s broader strategy to modernize Pakistan’s financial ecosystem and facilitate technology-driven investment opportunities. By introducing these requirements, the Commission aims to ensure that Digital Asset Management Companies (Digital AMCs) operate under transparent, well-defined, and investor-friendly regulatory standards.
According to the amendment, the term “Digital Platform” encompasses tools, applications, or software solutions that serve as the primary interface between Digital AMCs, investors, and other stakeholders involved in delivering DAMS. This definition extends to mobile applications, web portals, internet-based platforms, digital distribution channels, aggregation platforms, and other enabling services that support the investor experience.
The new regulations apply to all Digital AMCs that administer, manage, or own digital platforms. These companies are now required to meet specific eligibility conditions before being licensed to provide DAMS. A Fund Management NBFC, once granted permission under Rule 4 of the NBFC Rules, must explicitly declare its intention to secure a DAMS license in Form II of the NBFC Rules.
The SECP will issue an Asset Management Services (AMS) license on the condition that the entity operates exclusively through digital platforms. This licensing framework ensures that Digital AMCs maintain a clear focus on technology-enabled services, differentiating them from conventional AMCs while holding them accountable to similar compliance requirements.
To qualify, applicants must submit a robust business plan along with comprehensive financial projections spanning a minimum of five years. These projections must be supported by underlying assumptions and cover all aspects of the proposed operations. The SECP stressed that the requirements for Digital AMCs will remain largely aligned with those of conventional AMCs, except where expressly modified or relaxed to account for digital operations.
In addition to financial viability, the Commission emphasized the importance of robust governance structures, risk management protocols, and investor protection measures. By setting these standards, SECP seeks to foster confidence in digital investment platforms while encouraging innovation within Pakistan’s financial services sector.
The introduction of DAMS regulations comes at a time when digital finance adoption in Pakistan is accelerating. With the rise of fintech apps, online investment portals, and growing consumer demand for accessible financial solutions, Digital AMCs are expected to play a transformative role in expanding access to investment opportunities for retail and institutional investors alike.
By outlining this phased approach, the SECP has positioned itself as an enabler of digital finance while ensuring that investor protection and compliance remain central to market development. The regulator reiterated its commitment to balancing innovation with oversight, ensuring that the financial ecosystem evolves responsibly in line with international best practices.
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