Singapore’s deputy prime minister and finance minister expressed his views on his country’s cryptocurrency policy, drawing keen attention from local industries.

Singapore’s Deputy Prime Minister and Finance Minister Lawrence Wong said on the 2nd (local time) that “Singapore has no plans to become a cryptocurrency hub.”

“We are looking for ways to become a responsible and innovative cryptocurrency player instead,” he added. “We will continue pilot projects such as market payments for cases of using blockchain technology.”

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The deputy prime minister argues that well-run and managed cryptocurrency platforms can also collapse due to the volatility of cryptocurrency with no intrinsic value, and cryptocurrency platforms can collapse due to fraud, unsustainable business models, and excessive risk taking.

Earlier on the 30th of last month, Singapore’s Deputy Prime Minister and Finance Minister Lawrence Wong told parliament, “It was disappointing that Temasek lost about 275 million dollars (about 358.05 billion won) due to the collapse of the cryptocurrency exchange FTX.”

Indeed, the failure of FTX investment has undermined Temasek’s reputation in addition to Singapore’s image and financial losses.

“In the wake of this incident, a review is underway to improve the internal process,” he said. “The government is also taking the situation seriously.” However, failing to invest does not mean that the governance system did not work. Rather, this is the essence of investment and risk taking. The Singaporean government will take basic investor protection measures against local digital payment token service providers, he said.

The deputy prime minister argued that no regulation can completely eliminate the risk of cryptocurrency, and that people who trade cryptocurrency should be aware that they may lose all their value.