Singapore’s sovereign wealth fund Temasek has said it does not plan to invest in crypto companies due to the current regulatory environment, its chief investment officer Rohit Sipahimalani told CNBC in a July 11 report.
“There is a lot of regulatory uncertainty in this environment. And I do think it will be very difficult for us to do another investment and trade in the midst of all this regulatory uncertainty.”
Sipahimalani believes that losses are inevitable with early-stage investing, so the company has a 6% cap on such investments in its portfolio.
The investment chief admitted that Temasek could invest in cryptocurrencies if the regulatory framework becomes comfortable and he spots the right opportunity. However, the investment fund does not plan to invest in cryptocurrency exchanges.
The current regulatory environment for cryptocurrencies is relatively tense, especially in the US, where the financial regulator has filed charges against several cryptocurrency-related companies. However, other jurisdictions, including the UK, Europe and Hong Kong, are making strides with their crypto regulations.
in FTX
Last year, Temasek canceled its $275 million investment in FTX. At the time, the investment firm stated that it conducted extensive due diligence on FTX.
FTX filed for bankruptcy in November 2022 after the exchange was found to be insolvent and $8.7 billion in assets deposited by clients was embezzled.
Singapore’s Finance Minister and Deputy Prime Minister Lawrence Wong also described the loss as reputational damage to the country.
Speaking about the investment, Sipahimalani said:
“The investment in FTX was part of our early-stage investment strategy, where we invest in disruptive new technologies to see what’s around the corner so we can bring that to our portfolio companies and benefit within of our ecosystem.
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