SECP Lays Down the Law for Digital Asset Companies

SECP Outlines New Rules for Digital Asset Managers

The Securities and Exchange Commission of Pakistan (SECP) has unveiled a new set of rules for companies providing Digital Asset Management Services (DAMS). These changes, introduced via S.R.O.1438(I)/2025, are designed to regulate the growing number of firms using digital platforms to manage investor funds.

What’s a ‘Digital Platform’?

According to the new framework, a “Digital Platform” isn’t just one thing. It’s any tool, app, or software that a Digital Asset Management Company (Digital AMC) uses to connect with its customers. This includes mobile apps, web portals, and other online services that facilitate digital investment. Essentially, any company using a digital-first approach to manage assets is now subject to these new rules.

What the New Regulations Mean

This updated policy applies to both new and existing Asset Management Companies (AMCs) that use digital channels to serve clients. A Fund Management Non-Banking Finance Company (NBFC) that wants to offer DAMS now has to meet a specific set of criteria.

First, they must get a formal permission from the SECP and follow all existing rules for becoming a licensed NBFC. Critically, their application must explicitly state their intention to operate as a Digital AMC. The SECP can also grant a license that strictly limits a company to only providing services through digital platforms.

A key requirement is the submission of a comprehensive business plan for at least five years. This plan must detail how the company will operate, how it will remain financially stable, and its strategy for managing risks. The new regulations also make it clear that Digital AMCs must still comply with all the existing rules for conventional AMCs, unless a specific exception is made. This ensures a consistent level of oversight across the entire asset management industry, whether the service is traditional or digital.