Singapore sovereign fund Temasek mentioned it’s not planning to spend money on crypto corporations because of the present regulatory setting, its Chief funding officer, Rohit Sipahimalani, instructed CNBC in a July 11 report.
“There’s loads of regulatory uncertainty on this setting. 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 spend money on crypto if the regulatory framework turns into snug and it spots the correct alternative. Nevertheless, the funding fund doesn’t plan to spend money on crypto exchanges.
The present regulatory setting for crypto is comparatively tense, particularly within the U.S., the place the monetary regulator has filed expenses towards a number of crypto-related companies. Nevertheless, different jurisdictions, together with the U.Okay., Europe, and Hong Kong, are making big strides with their crypto laws.
On FTX
Final yr, Temasek wrote off its $275 million funding in FTX. On the time, the funding agency acknowledged that it carried out an intensive 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 belongings have been misappropriated.
Singapore’s Finance Minister and Deputy Prime Minister Lawrence Wong additionally described the loss as damaging the nation’s popularity.
Talking concerning the funding, Sipahimalani mentioned:
“The FTX funding was part of our early-stage funding technique, the place we spend money on new disruptive applied sciences to see what’s across the nook, in order that we will carry that to our portfolio corporations and profit inside our ecosystem.”
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