Singapore Prime Minister Lee Hsien Loong and Deputy Prime Minister Lawrence Wong face pressure from parliament over their involvement with FTX.

Singapore’s Prime Minister Lee Hsien Loong and Deputy Prime Minister Lawrence Wong are facing pressure from parliament over their involvement with FTX.

The opposition, led by the Workers’ Party, is conducting intense scrutiny over the government’s participation in the stock market, which filed for bankruptcy earlier this month. According to Bloomberg, several questions were raised about the investments that Temasek Holdings, a state investment company in Singapore, made in FTX.

At the core is the completed due diligence process, which would have given the green light for investments. In addition, various inquiries are underway regarding the government’s stance towards the crypto market in general.

Singapore and FTX

Temasek is estimated to have invested $210 million in FTX, giving it a 1% minority stake. In addition, another 65 million dollars were invested in the affiliate of the stock exchange in the United States, FTX US. This occurred in two funding rounds, conducted between October 2021 and January 2022.

The state-owned company claims that the due diligence process on FTX took place between February and October 2021, and included extensive reviews and audits of the exchange’s financials.

Following the FTX downfall, Temasek admitted that “our belief in the actions, judgment, and leadership of Sam Bankman-Fried, formed from our interactions with him and the opinions expressed in our conversations with others, appear to have been out of place.”

Last weekend, former Temasek CEO Ho Ching said that some investments the company made during her tenure were made against her will, further raising suspicions about the local government.

Ho Ching has not yet spared criticism of SBF, saying that “a loss in what could become a poorly run company without adult supervision is egg on our face.”

Is regulatory pressure in sight?

The fall of the SBF empire has been reflected throughout the market, causing other crypto companies to experience difficulties, or file for bankruptcy as well. Now, it could damage the political situation in Singapore.

Although Temasek’s investments in the FTX group represent just 0.09% of his $293 billion fund, they will provide ammunition for the opposition, a stain the current Loong government will have to deal with.

In addition, it is possible that the Asian country adopts a greater crackdown on the entire crypto industry. Despite being the first country to license tokens for an exchange, Singapore has not been as open to the cryptocurrency market.

Binance, for example, has already been on the watch list of local regulators. Also, the country has been associated with Do Kwon. Many believe that the fugitive creator of Earth (LUNA) is hiding in Singapore.

By Audy Castaneda

The new moratorium on PoW crypto mining will not only ban new operations but also prevent license renewals. The mayor believes New York should embrace all technology, which includes cryptocurrency, making wise decisions to lead the way.

Eric Adams, the mayor of New York, still wants to turn the city into a cryptocurrency epicenter. However, he thinks combining that goal with efforts to reduce crypto mining-related environmental costs is possible.

Adams made those comments after Kathy Hochul, the governor of New York, signed a two-year ban on PoW crypto mining. The mayor, a supporter of the industry, said in June that he would ask the governor to veto the bill.

In recent days, Adams said he would cooperate with lawmakers to find a balance between the growth of the crypto industry and legislative needs. He said he would work with the legislators who favor cryptocurrency and those having concerns to reach a common ground.

The recently signed moratorium on PoW crypto mining will not only ban new mining operations. It will not allow those companies that already operate in New York to renew their licenses either. That way, that state becomes the first in the country to ban that activity.

However, the moratorium establishes that any new PoW mining operation must operate with 100% renewable energy.

US Regulators Insist on Putting Pressure on the Crypto Industry

The United States leads the Bitcoin (BTC) mining hash rate, with 37.8% of the total network. However, there might be a ripple effect for other states to adopt the recent two-year moratorium.

Eric Adams believes that New York should become a welcoming place for all technology, which includes cryptocurrencies. He added that wise decisions are necessary for the city and the United States to lead the way.

After his election as Mayor, Eric Adams said he would receive his paychecks in cryptocurrencies. Furthermore, he announced that he wanted to make New York the epicenter of the crypto industry.

New York has some of the tightest regulations for cryptocurrency exchanges in the United States. In 2015, the state introduced the so-called BitLicense, which has received fierce criticism for its hostility towards cryptocurrencies.

The governor of New York will apply the BitLicense to organizations linked to commercializing and issuing crypto assets.

That new law establishes that crypto companies must pay evaluation fees, as banking and insurance institutions do. The governor says she seeks to recover the costs of operating expenses while providing support to the industry.

Cryptocurrencies play a relevant role in the global economy, which regulators do not overlook. Many governments link crypto assets with illicit activities such as money laundering and terrorism financing.

Meanwhile, Bitcoin is worth around USD 16,447 and has appreciated by 1.2% over the last 24 hours. Its daily trading volume is more than USD 25.03 billion, while its market capitalization is about USD 316.11 billion, according to CoinGecko.

By Alexander Salazar