Singapore sovereign fund Temasek mentioned it isn’t planning to put money into crypto corporations as a result of present regulatory atmosphere, its Chief funding officer, Rohit Sipahimalani, informed CNBC in a July 11 report.
“There’s lots of regulatory uncertainty on this atmosphere. And I do suppose that will probably be very troublesome for us to make one other funding and trade in the midst of all this regulatory uncertainty.”
Sipahimalani believes that losses are unavoidable with early-stage funding, so the agency has a 6% cap on such investments in its portfolio.
The funding chief conceded that Temasek may put money into crypto if the regulatory framework turns into comfy and it spots the proper alternative. Nonetheless, the funding fund doesn’t plan to put money into crypto exchanges.
The present regulatory atmosphere for crypto is comparatively tense, particularly within the U.S., the place the monetary regulator has filed fees in opposition to a number of crypto-related corporations. Nonetheless, different jurisdictions, together with the U.Ok., Europe, and Hong Kong, are making large strides with their crypto laws.
On FTX
Final 12 months, Temasek wrote off its $275 million funding in FTX. On the time, the funding agency said that it performed an in depth due diligence course of on FTX.
FTX filed for chapter in November 2022 after the trade was found bancrupt, and $8.7 billion in customer-deposited property have been misappropriated.
Singapore’s Finance Minister and Deputy Prime Minister Lawrence Wong additionally described the loss as damaging the nation’s fame.
Talking concerning the funding, Sipahimalani mentioned:
“The FTX funding was part of our early-stage funding technique, the place we put money into new disruptive applied sciences to see what’s across the nook, in order that we are able to deliver that to our portfolio corporations and profit inside our ecosystem.”
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