- FTX’s collapse caused great losses to Temasek, a Singaporean holding company.
- According to Wong, Singapore’s reputation has been damaged.
- Further, Singapore intends to implement protection measures for its investors.
The Collapse of the popular crypto exchange FTX, has really affected hundreds of thousands of investors around the world. In fact the entire crypto market crashed due to the liquidity crunch of FTX, causing global ripple effects. In addition, the price fall of Bitcoin is one of the great losses to the crypto space which reflected an overall decline in market cap.
In line with this, Temasek is a Singaporean state holding company owned by the Government of Singapore. Being a prestigious investor of FTX, the collapse led to a tremendous loss in millions for the company. Further, Temasek reveals that the company has invested an overall $275 million in FTX.
In reference to this effect, the Deputy Prime Minister and Finance Minister of Singapore, Lawrence Wong is concerned about this huge loss. Wong says, the FTX collapse is a “disappointing” for Singapore. In addition, the downfall of FTX not only caused financial losses but also reputational damage, feels Wong.
Singapore Introduces Protection Measures for Investors
Early today, Wong shared his opinion on the case in the Parliament meeting. During his speech he says, the suffering of this great loss from Singapore’s wealth fund will be addressed as a serious issue in the country.
Moreover, the Deputy Minister remains positive stating, the investment losses does not mean that the Singapore government system is not functioning. On the other hand, he sends support to his investors commenting, “It is the nature of investment and risk taking.”
However, affected by the huge loss, Temasek is setting up an independent team to review the loss history of its funds on FTX. In addition, Singapore governance will implement protection measures for all its investors. Also for all the crypto payment service providers authorized in the country.
Finally, Wong ends by stating, the risk in the cryptocurrency market cannot be removed by imposing strict regulations.