Singapore's deputy prime minister calls FTX loss 'disappointing,' pledges to improve the process

Temasek's concern nonaccomplishment of $275 cardinal successful the illness of cryptocurrency speech FTX was "disappointing" and damaging for Singapore, said Deputy Prime Minister and Finance Minister Lawrence Wong.

Speaking successful Parliament connected Wednesday, Wong said that the losses Singapore's sovereign wealthiness money suffered were "being taken seriously."

But the concern losses don't mean the governance strategy is not working, helium said. "Rather, it is the quality of concern and risk-taking."

Temasek announced successful mid-November that it will be writing down the worth of its concern successful FTX to zero, "irrespective of the result of FTX's bankruptcy extortion filing." Temasek besides said that they currently person nary nonstop vulnerability successful cryptocurrencies.

FTX has more than 100,000 creditors arsenic good arsenic liabilities successful the scope of $10 cardinal to $50 billion, according to a bankruptcy filing.

"What happened with FTX truthful has not lone caused fiscal nonaccomplishment to Temasek, but besides reputational damage," Wong said.

"Temasek recognizes this and has issued a broad connection to explicate its owed diligence process and the circumstances starring to its concern successful FTX," helium said, adding that an interior reappraisal is being conducted to survey what went incorrect with the FTX woody and however to amended the process.

He said the authorities does not prescribe guidelines connected the allocation of circumstantial assets oregon plus classes, whether for cryptocurrencies oregon different assets.

Ultimately, the authorities holds the boards and absorption teams liable for formulating concern strategies successful accordance with the government's wide hazard tolerance, helium said.

"What is important is that our concern entities instrumentality lessons from each nonaccomplishment and success, and proceed to instrumentality well-judged risks successful bid to execute bully wide returns successful the agelong term," Wong said successful effect to Members of Parliament's questions.

"In this way, we tin proceed to adhd to our nationalist reserves and supply a unchangeable income watercourse to money authorities programs for a agelong clip to come."

He pointed retired that contempt the penning disconnected of the FTX investment, Temasek's early-stage portfolio, arsenic of March, generated an interior complaint of instrumentality successful the mid-teens implicit the past decennary — amended than the manufacture average.

The FTX nonaccomplishment volition besides not interaction the nett concern returns of Singapore's reserves, which are "tied to the wide expected agelong word returns of our concern entities and not to idiosyncratic investments."

The curate said that going forward, the Monetary Authority of Singapore — the country's fiscal regulator and cardinal slope — plans to present immoderate basal capitalist extortion measures for integer outgo token work providers which are licensed successful Singapore.

After receiving manufacture and nationalist feedback, MAS volition finalize the proposals and instrumentality due regulatory measures.

But helium cautioned that adjacent with these measures, the monetary authorization volition not beryllium capable to forestall crypto work providers from failing.

"Those who commercialized cryptocurrencies indispensable beryllium prepared to suffer each their value. No magnitude of regularisation tin region this risk," helium warned.