Singapore starts shifting stance on cryptocurrencies amidst US SEC crackdown

Singapore’s sovereign wealth fund Temasek is not currently looking to invest in cryptocurrency exchanges, CNBC reports.
Temasek cited regulatory uncertainty as the reason for not investing in crypto exchanges following the $275 million FTX implosion.
The US Securities and Exchange Commission’s crackdown on crypto exchanges has likely influenced the stance of regulators worldwide.

While reeling from the FTX exchange implosion and the Three Arrows Capital crisis, the Monetary Authority of Singapore (MAS) had successfully maintained a neutral stance on crypto. However, this has likely changed with Temasek’s announcement that the sovereign wealth fund is no longer keen on investing in crypto exchanges.

The conglomerate is owned by the Government of Singapore and the entity’s statement is indicative of its changing approach to crypto.

Also read: Tether, USDC signal incoming price rally, while Circle CEO builds a case for China’s CBDC

Singapore’s Temasek gives crypto exchanges the cold shoulder

Temasek posted a 5.2% drop in its net portfolio value, its worst return since 2016, according to a statement released on Tuesday. Rohit Sipahimalani, Chief Investment Officer (CIO) of Temasek said that the state’s sovereign wealth fund is not looking to invest in crypto companies, exchanges.

Temasek suffered heavy losses on account of the tumultuous events of 2022, which include the $275 million implosion of Samuel Bankman-Fried’s FTX exchange and Three Arrows Capital’s bankruptcy.

Sipahimalani said,

There’s a lot of regulatory uncertainty in this environment. And I do think that be very difficult for us to make another investment and exchange in the middle of all this regulatory uncertainty.

Temasek’s CIO explained that the firm never intended to invest in cryptocurrencies. The changing macroeconomic and geopolitical landscape, coupled with the SEC crackdown have likely influenced the fund’s decision.

The US SEC’s recent crackdown on cryptocurrency exchanges Binance and Coinbase was followed by a shift in regulators’ stance worldwide. Binance faced investigations in France and Australia following the SEC’s lawsuit.

Like this article? Help us with some feedback by answering this survey:

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.