The State Bank of Pakistan (SBP) has revoked the in-principle approval and pilot operations approval granted to TAG Innovation Pvt. Ltd. to operate as an Electronic Money Institution (EMI) with immediate effect as per the applicable laws.
The SBP has taken this decision to protect the interest of the public at large after identifying violations of its regulatory requirements and other concerns during the pilot operations of the company.
EMIs are entities that offer innovative, user-friendly, and cost-effective low-value digital payment instruments like wallets, prepaid cards, and contactless payment instruments.
TAG has been advised to close all customers’ wallets and remove their applications from Google’s Play Store and Apple’s App Store and any other platform with immediate effect.
In August, the central bank had informed the public about the regulatory action taken against the company.
The financial technology startup had raised more than $12 million in Pakistan’s largest seed funding round last year in September, pushing the startup’s total financing to over $17.5 million.