Temasek Ditches Crypto Investment Amid Regulatory Uncertainties
• Temasek, a Singapore-based sovereign wealth fund with a net portfolio worth $496 billion, has reportedly decided to avoid investing in cryptocurrency companies due to the industry’s regulatory uncertainties.
• The decision follows after Temasek wrote off its entire stake of $275 million in FTX following the collapse of the now-bankrupt crypto firm.
• Temasek is reportedly uninterested in investing in crypto exchanges and cryptocurrencies at this point in time.
Temasek Avoids Crypto Investment Due to Regulatory Uncertainties
Singapore-based sovereign wealth fund Temasek is reportedly not interested in putting money into the digital assets industry due to regulatory uncertainties. With a net portfolio worth $496 billion, the investment firm is currently avoiding crypto companies as they face challenges from regulators.
Temasek Writes Off Entire Stake From FTX
Temsek had previously invested $275 million into FTX, but wrote off the entire stake following the collapse of the now-bankrupt crypto firm. In light of this, chief investment officer Rohit Sipahimalani says that it would be difficult for the firm to make another such exchange amidst all this regulatory uncertainty.
Not Interested In Crypto Exchanges or Cryptocurrencies
As Ripple, Coinbase and Binance face charges from the U.S. Securities and Exchange Commission (SEC), Sipahimalani says that Temasek finds investing in crypto exchanges unappealing right now. He added that even before their investment into FTX, they had never been looking to invest in cryptocurrencies either.
The Need For a Regulatory Framework
Sipahimalani said that should there be a suitable regulatory framework and investment opportunity then there is no reason for them not to look into it again but at present they are not comfortable with investing due to current regulations surrounding digital assets.
Conclusion
It appears that while Temsek may eventually become open to making investments into cryptocurrency companies once again, at present they will be focusing on other more traditional asset classes instead due to ongoing regulatory uncertainty within this nascent space.