Singaporean sovereign fund Temasek exits crypto altogether amid regulatory crackdown

Singapore sovereign wealth fund Temasek has said it has no plans to invest in cryptocurrency companies due to the current regulatory environment, chief investment officer Rohit Sipahimalani told CNBC on July 11. report.

“There is a lot of regulatory uncertainty in this environment.

Sipahimalani believes losses are inevitable in early-stage investments, which is why the company caps such investments in its portfolio at 6%.

The head of investment acknowledged that Temasek could invest in cryptocurrencies once the regulatory framework becomes more comfortable and it finds the right opportunities. However, the investment fund does not plan to invest in cryptocurrency exchanges.

The current regulatory environment for cryptocurrencies is relatively tense, especially in the United States, where financial regulators have filed charges against several crypto-related companies. However, other jurisdictions such as the UK, Europe and Hong Kong have made significant strides in cryptocurrency regulation.

About FTX

Last year, Temasek canceled a $275 million investment in FTX. At the time, the investment firm said it had conducted an extensive due diligence process on FTX.

FTX filed for bankruptcy in November 2022 after the exchange went bankrupt and was found to have diverted $8.7 billion in assets entrusted to it by customers.

Lawrence Wong, Singapore’s Finance Minister and Deputy Prime Minister, also said the losses hurt the country’s reputation.

Sipahimalani said of the investment:

“Investing in FTX is part of our early-stage investment strategy, investing in new disruptive technologies to see what is right there, bring it to our portfolio companies, and grow our business. We will be able to profit within the ecosystem.”

The article first appeared on CryptoSlate after Singaporean sovereign wealth fund Temasek completely exited cryptocurrencies amid a regulatory crackdown.

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