After $275,000,000 Crypto Investment Goes to Zero, Sovereign Wealth Fund Says It’s Avoiding Industry for Now: Report

Temasek, a sovereign wealth fund owned by the Singapore government, is reportedly not interested in putting money into the digital assets industry.

CNBC reports that the investment firm with a net portfolio worth $496 billion is currently avoiding crypto companies as the nascent industry faces regulatory uncertainties.

Says Temasek chief investment officer Rohit Sipahimalani,

“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 previously invested $275 million in FTX but wrote off the entire stake following the collapse of the now-bankrupt crypto firm.

As Ripple, Coinbase and Binance face charges from the U.S. Securities and Exchange Commission (SEC), Sipahimalani says Temasek finds investing in crypto exchanges unappealing right now.

“If you have the right regulatory framework, and we are comfortable with it, and you have the right investment opportunity, there’s no reason for us to not to look at it. But as I said, at this point in time, we would not be comfortable investing in exchanges given the way things are right now.”

He says the firm is also uninterested in cryptocurrencies.

“We’ve never been looking to invest in cryptocurrencies. Even 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.”

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