Alibaba’s recent announcement of the appointment of crypto-friendly Joseph Tsai as the new Chairman, replacing eight-year veteran Daniel Zhang, has sparked interest in the crypto community. The leadership change is a part of Alibaba’s pursuit of a six-way restructuring, aiming to create a family of standalone leaders in businesses from cloud computing and logistics to international commerce. Inside the crypto community, it has prompted speculation that the move may signal Alibaba’s intention to embrace Web3 and crypto in China, as the country continues to experiment with the sector in Hong Kong.
Tsai, currently Executive Vice Chairman, has been a vocal advocate of cryptocurrencies and digital assets. He first announced his interest in the Web3 space in December 2021 with a short tweet: “I like Crypto.” Ever since, Tsai has been an active investor in the space, participating in fundraising rounds for now-collapsed cryptocurrency exchange FTX, popular Ethereum scaling solution Polygon, and NFT and metaverse platform Artifact Labs. He also owns the Brooklyn Nets, which has seen two of its key players, Kevin Durant and Spencer Dinwiddie, involved in crypto.
Hong Kong, a Special Administrative Region of China with some autonomy, has recently shown a clear desire to rebuild its position as a hub for the industry. Earlier this month, the city’s financial regulator implemented its new regulatory framework for crypto. Under the new rulebook, the city-state will allow retail investors to trade specific “large-cap tokens” on licensed exchanges, given that safeguards such as knowledge tests, risk profiles, and reasonable exposure limits are in place. Recently, the city even pressured some banks, such as HSBC, Standard Chartered, and Bank of China, to engage with crypto clients.
Some see Hong Kong as China’s testing ground for digital assets, suggesting that the mainland might be next to welcome cryptocurrencies. However, crypto pioneer Bobby Lee, who set up China’s first Bitcoin exchange and founded US-based crypto storage provider Ballet Global, said there is no guarantee that China would change its stance against crypto. Lee claimed that officials who let exchanges obtain a license may have overblown expectations for connecting with mainland China, as digital asset trading remains banned in China.
This leadership change at Alibaba reflects the ongoing development of the crypto industry in China and Hong Kong. While it may not necessarily predict a major shift in policy, it demonstrates how key players in the business world are adopting crypto and digital assets. Ultimately, the impact of Alibaba’s new leadership and Hong Kong’s regulatory changes on China’s overall approach to cryptocurrencies remains uncertain.
Source: Cryptonews
