The Securities and Exchange Commission of Pakistan (SECP) has introduced new rules and regulations for Digital Asset Management Services (DAMS), outlining the framework for Digital Asset Management Companies (Digital AMCs) to provide digital investment services. These guidelines aim to regulate and standardize the rapidly growing sector of digital asset management, ensuring compliance, investor protection, and transparency within Pakistan’s financial ecosystem.
Issued through S.R.O. 1438(I)/2025, the regulations amend the Non-Banking Finance Companies and Notified Entities Regulations, 2008. Under the new framework, a “Digital Platform” is defined as any tool, application, software, or solution that serves as the primary interface between the Digital AMC, investors or unitholders, and other involved parties. This definition includes mobile applications, web-based portals, internet channels, digital distribution platforms, and any enabling or supplementary services that support the delivery of digital asset management services.
The SECP’s updated procedure applies to all Digital AMCs offering DAMS, whether currently operating or intending to use Digital Platforms to deliver their services. All digital platforms administered, managed, or owned by Digital AMCs must comply with these regulations, ensuring standardized operations and safeguarding investor interests.
Eligibility requirements stipulate that a Fund Management NBFC seeking to provide DAMS must clearly indicate its intention to undertake these services in its license application, as outlined in Form-II of the NBFC Rules. The SECP may grant an Asset Management Services (AMS) license on the condition that the AMC provides DAMS exclusively through digital platforms, reinforcing the focus on technologically driven service delivery.
Furthermore, any Fund Management NBFC applying for a license to provide DAMS must submit a detailed business plan, including comprehensive financial projections for a minimum of five years from the commencement of business. This plan should cover operational strategies, investment models, risk management protocols, and the underlying assumptions supporting the financial forecasts.
The SECP emphasized that Digital AMCs must comply with all applicable requirements for conventional AMCs under the NBFC Regulations, Circulars, and Directives, except in cases where specific provisions are modified or relaxed by the new rules. This ensures that Digital AMCs operate under a robust regulatory framework while leveraging digital technologies to expand access to asset management services.
By introducing these regulations, the SECP aims to create a secure, transparent, and standardized environment for digital asset management in Pakistan. These measures not only protect investors but also support innovation in the financial sector, encouraging AMCs to adopt digital platforms that enhance efficiency, accessibility, and scalability of investment services.
The move aligns with Pakistan’s broader vision of integrating technology into financial services, promoting fintech adoption, and providing consumers with modern, secure, and convenient digital investment options. As Digital AMCs adapt to these regulations, the country’s digital asset management ecosystem is expected to become more robust, transparent, and investor-friendly.
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