One of Alibaba’s co-founders, Joseph Tsai, will take over as Chairman in September 2023, the company announced on June 20. Tsai’s rise provides a new storyline for crypto fans, as he is a vocal promoter of Bitcoin and an avid web3 investor.
With Joseph Tsai, an outspoken proponent of Crypto, now at the helm of Alibaba, the company could launch new crypto-related projects soon. However, how this shift will play out is unclear in light of China’s conservative position toward cryptos.
It’s no secret that Tsai is interested in the blockchain and crypto industries. In December of 2021, a tweet simply read, “I like Crypto.” At the time, the comment raised eyebrows, but it ultimately prompted several costly space initiatives.
Tsai has now become an active investor in the crypto market, contributing to the funding rounds of prominent crypto startups such as the defunct crypto exchange FTX, the widely used Ethereum scaling solution Polygon, and the NFT and metaverse platform Artifact Labs.
In addition to being active in crypto himself, he is also the owner of the NBA’s Brooklyn Nets, whose roster features stars like Kevin Durant and Spencer Dinwiddie.
Alibaba’s new CEO is a crypto proponent
The South China Morning Post stated in January 2023 that FTX has a minority stakeholder consisting of Tsai’s family office, Blue Pool Capital. This involvement in two of FTX’s funding rounds was previously unknown and was only revealed through court records.
In addition, Tsai’s portfolio includes investments in the February 2022 round of Polygon (MATIC), the Web3 fantasy sports platform Fast Break Labs, and the May 2023 round of the non-fungible token (NFT) platform Artifact Labs.
However, the relationship continues. Tsai owns the Brooklyn Nets, a team with crucial players such as Kevin Durant and Spencer Dinwiddie, who have dabbled in cryptos.
What does Hong Kong’s use of Crypto mean for China?
Hong Kong, a Special Administrative Region of China that now maintains limited autonomy has recently demonstrated a definite ambition to regain its status as a hub for the industry.
June 1 saw the implementation of the city’s new regulatory framework for cryptos. According to the new regulations, provided that protections like knowledge exams, risk profiles, and appropriate exposure limitations are in place, the city-state will permit retail investors in the city to trade certain “large-cap tokens” on authorized exchanges.
Even recently, Singapore pressured institutions such as HSBC, Standard Chartered, and Bank of China to engage with crypto clients. Some consider Hong Kong China’s testbed for digital assets, arguing that the mainland may be the next to accept cryptos.
However, crypto pioneer Bobby Lee, who established China’s first Bitcoin exchange and founded U.S. crypto storage provider Ballet Global, stated there is no assurance that China will alter its anti-crypto stance.
Lee asserted that, as trading digital assets is still illegal in China, officials who granted licenses to exchanges may have had unrealistic expectations for establishing connections with the mainland.
Are cryptocurrencies the wave of the future?
The employment of Tsai might signal Alibaba’s possible openness to Crypto should the regulatory climate in China improve. Or it could be a calculated move, with the founder taking charge during the transition.
However, the selection of Tsai has sparked a fire in the discussion of Crypto’s future in China. One of China’s largest institutions could potentially become a proponent for cryptos, helping to shape China’s future digital economy.
Only time will tell if this shift toward Crypto will lead to a full-fledged revolution. As Tsai gets ready to start in his new position in September, which might usher in a new era for Alibaba and, possibly, for China’s crypto story, we anticipate his arrival with bated breath.
However, the appointment of Joseph Tsai as Chairman of Alibaba, with an emphasis on adopting cryptos, represents a watershed moment in the company’s development. This exemplifies Alibaba’s dedication to the cutting edge and its understanding of the revolutionary potential of digital currency. Alibaba, now under Tsai’s leadership, is poised to become a frontrunner in the crypto arena, furthering its vision of a more connected and digitally inclusive future.
