<\/p>\n
The chief investment officer of Singapore’s second-largest wealth fund said Tuesday regulatory uncertainty over digital assets was the main reason for not investing further in the industry.<\/p>\n
Speaking at a press conference, Rohit Sipahimalani of Temasek Holdings \u2014 one of Singapore’s two wealth funds \u2014 said it would be “difficult” to justify such a move.<\/p>\n
The wealth fund is second only to GIC and manages a portfolio of around S$382 billion ($284.65 billion), primarily across Singapore and Asia. On Tuesday, Temasek reported a 5.2% decline in the value of its portfolio from March figures of S$403 billion ($301.1 billion).<\/p>\n
Temasek noted that while its investments in the city-state have continued to hold their ground, the value of its direct investments worldwide has seen a reduction in the last two years, Reuters reported<\/a>,<\/p>\n Temasek invested more than $200 million into failed crypto exchange FTX for a 1% stake in 2021 and a further $65 million to the exchange’s US subsidiary from October through to January 2022. <\/p>\n It also poured $100 million into Asia’s largest blockchain investment firm, Animoca Brands<\/a>through convertible bonds as it sought exposure to the Web3 sector.<\/p>\n Sipahimalani highlighted on Tuesday that Temasek’s early-stage investment in the exchange followed thorough due diligence, emphasizing that FTX’s growing market share and active regulatory engagement spurred its decision.<\/p>\n After the exchange went bust in early November, Temasek immediately moved to write down<\/a> all of its FTX investments. Temasek subsequently punished executives and team members responsible for its investment into the exchange in May, leading to a reduction in their salaries<\/a>,<\/p>\n \u201cWe’ve never been looking to invest in cryptocurrencies,\u201d the executive said, as reported by CNBC<\/a>, \u201cWe would not be comfortable investing in exchanges given the way things are right now.\u201d<\/p>\n Should regulations become clearer and frameworks are hashed out, the executive said his firm would consider looking at future investments only if the right opportunity came along.<\/p>\n Singapore, along with other Asian countries and competing jurisdictions, has continued tightening digital asset rules, including provisions aimed at effectively banning centralized lending and staking<\/a> services.<\/p>\n Those rules center around the disclosure of company assets and separation of funds from corporate balance sheets in order to avoid commingling \u2014 a major gripe levied against FTX last year.<\/p>\n \u201cEven the investment in FTX, we’ll be talking about investing in an exchange, which allowed us to get fee-based revenue without thinking [of] balance sheet risk or any trading risks,” the executive reportedly said.<\/p>\n Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter<\/a> now.<\/strong><\/p>\n Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief<\/a>,<\/strong><\/p>\n Can’t wait? Get our news the fastest way possible. Join us on Telegram<\/a> and follow us on google news<\/a>,<\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" The chief investment officer of Singapore’s second-largest wealth fund said Tuesday regulatory uncertainty over digital assets was the main reason for not investing further in the industry. Speaking at a press conference, Rohit Sipahimalani of Temasek Holdings \u2014 one of Singapore’s two wealth funds \u2014 said it would be “difficult” to justify such a move. […]<\/p>\n","protected":false},"author":2,"featured_media":121341,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-121340","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/121340","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=121340"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/121340\/revisions"}],"predecessor-version":[{"id":121342,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/121340\/revisions\/121342"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/121341"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=121340"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=121340"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=121340"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}FTX write down<\/h2>\n
\n