The liquidity crunch at FTX caused the entire cryptocurrency market to crash, having an impact across the world.
Additionally, the decline in Bitcoin’s price is one of the biggest setbacks for the crypto industry, reflecting a general decline in market cap.
Accordingly, Temasek, a Singaporean state holding company that is owned by the Singaporean government and a prestigious investor in FTX, had huge losses as a result of the crypto exchange collapse.
Temasek discloses that it has made a total investment of $275 million in FTX.
Lawrence Wong, Singapore’s Deputy Prime Minister and Finance Minister, is worried about this significant loss in light of this.
The FTX collapse, according to Wong, is “disappointing” for Singapore. Additionally, Wong said that the demise of FTX resulted in reputational harm in addition to financial losses.
Wong spoke about the situation in the Parliament meeting. He claims that the suffering caused by this significant loss to Singapore’s wealth fund will be addressed as a serious issue in the nation during his speech.
The Deputy Minister also maintains his optimism, saying that investment losses do not indicate that the Singapore government system is broken.
However, he offers encouragement to his investors, saying, “It is the nature of investment and risk taking.”
Affected by the significant loss, Temasek is assembling a team of outside experts to examine the history of losses incurred by its funds on the FTX.
Singapore governance will also put protection measures in place for all of its investors. Additionally for all of the licensed cryptocurrency payment service providers in the nation.
Wong concludes by saying that strict regulations alone won’t eliminate the risk in the cryptocurrency market.