Temasek Cautious on Crypto Investment Amid Regulatory Uncertainty

Singapore-based investment firm Temasek is hesitant to invest in cryptocurrency companies due to the ongoing regulatory uncertainty in the market. In an interview with CNBC, Rohit Sipahimalani, the Chief Investment Officer of Temasek, discussed the reasons behind the firm's reluctance to expose itself to crypto investments.

Sipahimalani pointed out that regulatory clarity is essential for Temasek to consider investing in the crypto sector. He stated, "There's a lot of regulatory uncertainty in this environment. We would not be comfortable investing in exchanges given the way things are right now." The recent legal actions by the U.S. Securities and Exchange Commission against Ripple, Binance, and Coinbase for alleged violations of securities laws further contribute to the cautious approach.

It's worth noting that Temasek had previously written down its full investment in FTX to zero last November. Currently, the net value of its portfolio stands at approximately $287 million.

Temasek, a former investor in FTX, recently reported its worst annual shareholder return since 2016, with a decline of 5.07%. The firm cited macro and geopolitical challenges as factors contributing to this decline. However, Sipahimalani emphasized that Temasek remains open to investing in crypto firms but only under more favorable regulatory conditions. He stated, "If you have the right regulatory framework, and we're comfortable with, and you have the right investment opportunity, there's no reason for us not to look at it."