Temasek's Chief Investment Officer: Currently, no plans to invest in cryptocurrency companies due to regulatory uncertainty.
2023-07-11 12:47
Odaily News - Rohit Sipahimalani, Chief Investment Officer of Singapore's sovereign wealth fund Temasek, said in an interview, "There is a lot of regulatory uncertainty in the current environment. I do believe that it is difficult for us to invest and trade in (cryptocurrency companies) under these circumstances."
He added, "If you have the right regulatory framework, we are satisfied, you have the right investment opportunities, there is no reason for us not to consider it. But as I said, at this time, given the current situation, we are not willing to invest in exchanges."
Sipahimalani further explained that Temasek has never sought to invest in cryptocurrencies, and even the investment in FTX is the same. Temasek would discuss investments in trading platforms that enable them to earn revenue from platform fees without considering balance sheet risks or any trading risks.
He stated that when considering FTX, Temasek conducted the necessary due diligence for early-stage investments and ultimately decided to invest because FTX "has good technology, is gaining market share, and has demonstrated willingness to engage with regulatory authorities and obtain licenses."
Sipahimalani admitted, "When we make early-stage investments, there may be some losses, some write-offs, but what is important to us is that the entire early-stage investment portfolio should perform well." (CNBC)
Earlier on May 29th, Temasek's official website published a statement by the Chairman about the internal review of the FTX investment, announcing salary reductions as a punishment for the senior management and investment team responsible for FTX investments.
The Chairman of Temasek stated, "FTX engaged in fraudulent behavior and intentionally withheld information from investors, including Temasek. We are disappointed and regret the outcome of the investment and the negative impact it has had on our reputation. Although the investment team did not engage in any misconduct in the process of making the investment recommendation, the investment team and the senior management responsible for the investment decision bear collective responsibility and, as a result, have their remuneration reduced."
He added, "If you have the right regulatory framework, we are satisfied, you have the right investment opportunities, there is no reason for us not to consider it. But as I said, at this time, given the current situation, we are not willing to invest in exchanges."
Sipahimalani further explained that Temasek has never sought to invest in cryptocurrencies, and even the investment in FTX is the same. Temasek would discuss investments in trading platforms that enable them to earn revenue from platform fees without considering balance sheet risks or any trading risks.
He stated that when considering FTX, Temasek conducted the necessary due diligence for early-stage investments and ultimately decided to invest because FTX "has good technology, is gaining market share, and has demonstrated willingness to engage with regulatory authorities and obtain licenses."
Sipahimalani admitted, "When we make early-stage investments, there may be some losses, some write-offs, but what is important to us is that the entire early-stage investment portfolio should perform well." (CNBC)
Earlier on May 29th, Temasek's official website published a statement by the Chairman about the internal review of the FTX investment, announcing salary reductions as a punishment for the senior management and investment team responsible for FTX investments.
The Chairman of Temasek stated, "FTX engaged in fraudulent behavior and intentionally withheld information from investors, including Temasek. We are disappointed and regret the outcome of the investment and the negative impact it has had on our reputation. Although the investment team did not engage in any misconduct in the process of making the investment recommendation, the investment team and the senior management responsible for the investment decision bear collective responsibility and, as a result, have their remuneration reduced."
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