Singapore starts shifting stance on cryptocurrencies amidst US SEC crackdown

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.

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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.