• Singapore’s Investment Giant Temasek has paused its crypto efforts due to the lack of regulatory clarity.
• CEO Rohit Sipahimalani said the company will reconsider its stance should watchdogs implement “the right regulatory framework”.
• The Monetary Authority of Singapore has taken steps to protect local crypto participants by banning digital asset organizations from offering lending and staking services to retail investors.

Singapore’s Investment Giant Temasek Pauses Crypto Efforts

Temasek, a Singaporean state-owned conglomerate, has paused its cryptocurrency investments due to the lack of regulatory clarity. CEO Rohit Sipahimalani said that while they had a bad experience with FTX, they may consider re-entering the market if regulators impose an appropriate framework for the industry.

Regulatory Uncertainty

According to Sipahimalani, there is a lot of regulatory uncertainty in the sector which makes it difficult for Temasek to make another investment. He noted that the entity would reconsider their stance if a comprehensive regulatory framework were put in place that they were comfortable with.

Protection for Local Crypto Participants

The Monetary Authority of Singapore (MAS) is taking steps to ensure protection for local crypto participants. They have proposed banning digital asset organizations from offering lending and staking services to retail investors as well as requiring firms hold customer assets such as cryptocurrencies separately from their own funds.

FTX Experience

Temasek had previously suffered losses when FTX collapsed, losing around $275 million in investments. As such this could be one factor contributing to their current hesitation towards further involvement in the cryptocurrency sector until greater security measures are implemented by regulators.

Conclusion

While Temasek is currently not interested in making any more investments into cryptocurrency due to issues with regulation and security, they might be open to doing so again should governments take appropriate measures and create a comprehensive regulatory framework within which companies can safely invest in digital assets once more.