• Singaporean sovereign fund Temasek has exited crypto altogether due to the current regulatory crackdown.
• Chief investment officer Rohit Sipahimalani cited “regulatory uncertainty” as a major hurdle in further investments.
• He conceded that the fund might invest in crypto if the regulatory environment becomes comfortable.
Temasek Exits Crypto Amid Regulatory Clampdown
Singaporean sovereign fund Temasek announced that it is not planning to invest in cryptos due to the current regulatory environment, its Chief Investment Officer, Rohit Sipahimalani, revealed to CNBC on July 11. Citing „regulatory uncertainty“ as a major hurdle in further investments, he noted that losses are unavoidable with early-stage investments and thus a cautious approach is needed. However, he conceded that Temasek might invest in crypto if the regulatory framework becomes comfortable.
Regulatory Uncertainty a Major Hurdle
Sipahimalani explained that there is currently too much regulatory uncertainty for them to make another investment into crypto exchanges or assets. He said: “There’s a lot of regulatory uncertainty in this environment. And I do think that it will be very difficult for us to make another investment and exchange in the middle of all this regulatory uncertainty.“
Cautious Approach Needed
The chief investment officer noted that losses are unavoidable with early-stage investments and thus a cautious approach is needed towards investing into such projects. He also admitted that there could be potential rewards from such investments but these need to be weighed against possible risks associated with them under current regulations.
Possibility of Investment If Regulations Improve
Despite their exit from crypto at present, Sipahimalani did concede that they may consider investing again if regulations become more favorable and investor protections are introduced: „It’s possible we could look at something like this [crypto] again but only when there’s better investor protection structures around it.“
Temasek’s Previous Involvement With Crypto
This news follows after Temasek made an undisclosed investment into FTX earlier this year which led to heavy losses due to Bitcoin’s price drop back in May 2021, resulting in them exiting their position shortly afterwards. The firm also invested $100 million into blockchain startup Chia earlier this year as part of its series C funding round led by Andreessen Horowitz and Breyer Capital .