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Alibaba (NYSE: BABA) announced on Tuesday that Joseph Tsai, one of its co-founders, will assume the position of Chairman starting in September.

In a recent leadership shuffle, Alibaba has appointed Eddie Yongming Wu as its new CEO, while also undertaking a restructuring process to establish separate units for its technology services and retail divisions.

Crypto stakeholders optimistic about China's stance towards cryptocurrency, often referred to as the "China narrative," might closely analyze this development, as Joseph Tsai, known for his vocal support of crypto and involvement as a Web3 investor, assumes the role of Chairman.

The presence of an individual with such perspectives in a prominent position within a major Chinese institution like Alibaba could be seen as an indication that the company is preparing to embrace the emerging landscape of Web3 and cryptocurrencies in China, should the circumstances allow for it.

Joe Tsai Likes Crypto

In December 2021, Tsai expressed his fascination with the Web3 sphere through a succinct tweet that stated, "I like Crypto."

 

At that time, Tsai refrained from providing further details about his intentions. However, in the subsequent year, he emerged as a proactive investor in the field.

In January 2023, it was revealed through court documents that Blue Pool Capital, Tsai's family office, had been a silent investor in FTX. This information had previously remained undisclosed, and it came to light that they held a minority stake in the company, having participated in two of FTX's fundraising rounds.

Tsai's investment portfolio includes not only lesser-known ventures but also prominent ones. He participated in Polygon's funding round in February 2022, supported the Fast Break Labs fundraise for their Web3 fantasy sports platform, and contributed to Artifact Labs' May 2023 round, a spin-off of the South China Morning Post where Tsai holds the position of chairman.

In addition, Tsai is the owner of the Brooklyn Nets basketball team, where two of its prominent players, Kevin Durant and Spencer Dinwiddie, have shown interest in the crypto space. Durant entered into a partnership in 2021 to endorse Coinbase (COIN) and signed a two-year deal with Dapper Labs. Meanwhile, Dinwiddie tokenized his employment contract and even spoke at CoinDesk's Consensus conference.

But Does China Like Crypto?

However, it is yet to be seen whether China's stance towards cryptocurrency is truly becoming more favorable.

Hong Kong, a Special Administrative Region with certain autonomy, has proposed a set of cryptocurrency regulations that would permit licensed trading of digital assets within its jurisdiction.

Detractors argue that these regulations are excessively stringent, effectively deterring major institutions from participating in the market.

"Hong Kong's framework as it exists today is highly unattractive. The market is small and unproven, banking partnerships are non-existent, and products are highly restricted,” Leo Weese, co-founder and President of the Bitcoin Association of Hong Kong, previously told CoinDesk.

Banks have shown hesitancy in embracing the crypto space, prompting the Hong Kong Monetary Authority to exert pressure on prominent financial institutions to onboard clients involved in cryptocurrencies.

In other parts of the country, there is a growing acceptance of digital assets on the blockchain, as long as they do not involve cryptocurrencies.

Non-fungible tokens (NFTs) are permitted as long as they lack speculative characteristics. In 2021, Alibaba's Alipay imposed restrictions on the sale of NFTs, requiring users to hold them for a minimum of 180 days before selling.

Beijing characterizes Web3 as an internet that leverages artificial intelligence, blockchain technology, advanced computing chips, and robust networks. Web3 represents the next iteration of the internet and should not be conflated with cryptocurrency.

Alibaba's actions of assembling an executive team that is prepared for the potential emergence of cryptocurrency in China may suggest that they possess insights or information not yet widely known. Alternatively, it could simply be a strategic reshuffling of executives, with one of the company's founders taking a prominent role.

Source Coindesk