SECP Issues New Regulations for Digital Asset Management Services

The Securities and Exchange Commission of Pakistan (SECP) has issued new requirements for undertaking Digital Asset Management Services (DAMS) by Digital Asset Management Companies (Digital AMCs). The SECP has introduced these changes through S.R.O.1438(I)/2025, amending the Non-Banking Finance Companies and Notified Entities Regulations, 2008. According to the updated regulations, a “Digital Platform” refers to a tool, application, software, or solution that uses digital/IT as the primary interface between the Digital AMC, investors/unitholders, and other parties involved in offering DAMS. This includes mobile applications, web-based portals, internet-based channels, digital distribution/aggregation platforms, and other enabling or supplementary support services. The new procedure applies to Digital AMCs providing DAMS and digital services offered by Asset Management Companies (AMCs) using or intending to use Digital Platforms to serve customers and investors. These requirements are applicable to all Digital Platforms administered, managed, or owned by Digital AMCs. The eligibility criteria specify that a Fund Management NBFC, after obtaining permission under Rule 4 of the NBFC Rules, must comply with all conditions for license issuance under Rule 5 of the NBFC Rules. Additionally, it must clearly state its intention to obtain a license for DAMS in Form-II of the NBFC Rules. The SECP may grant an AMS license with the condition that the AMC will only provide DAMS through digital platforms. A Fund Management NBFC intending to engage in DAMS must submit, along with its license application, a viable business plan and comprehensive financial projections for at least five years from the commencement of business. The business plan must include, but is not limited to, the following aspects: Digital AMCs must adhere to all applicable requirements for conventional AMCs under the NBFC Regulations, Circulars, and Directives unless explicitly modified or relaxed by the new requirements.