Binance CZ Tron Justin Sun

Binance CZ Willing to Step Down; Justin Sun Joins Communist Party

Binance CZ Tron Justin Sun

Crypto exchange Binance CEO Changpeng Zhao (CZ) hints to step down as he is looking for a replacement. And Justin Sun, Tron blockchain’s founder, joins a research project at a China Communist Party school. The news comes at a time when China is cracking down on the broader crypto industry.

CZ strongly hinted he is looking to hire his own replacement as the next CEO of the world’s biggest crypto exchange, which is under pressure from regulators around the world. “I’m a technology entrepreneur. We are doing this pivot to be a regulated financial institution and I would be very open to look for a leader with a strong regulatory background.”

He said Binance would seek approval by regulators, according to Reuters. “We want to be licensed everywhere … From now on, we’re going to be a financial institution,” CZ said. Previously, CZ also discussed his aim to take Binance US public in a virtual summit.

Responding to regulatory pressure, Binance curbed some services on stock token trading, high-leverage trading, among others. Lately, Binane has slashed daily withdrawal limits by 97% for users with only basic verification. It changed the daily withdrawal limits from 2 BTC to 0.06 BTC for non-KYC users. Binance will phase this policy in for existing accounts between August 4 and August 23.

Binance Cuts Daily Withdrawal Limits for Non-KYC Users

Justin Sun, the founder of the Tron blockchain, is participating in a research project at Chinese Central Party School. The school is a higher education institution that trains cadres of the Chinese Communist Party (CCP).

Sun said he’s “going from business to school” on his WeChat and Weibo accounts. “We have collaborated with the Chinese Academy of Governance, which is a prestigious research institution in China,” Sun tweeted. “Currently I have no plan to retire,” he added in response to the speculation that Sun is winding down his crypto business.

Chinese blockchain reporter Colin Wu tweeted that Sun will not actually retire, but aims to show he has a good relationship with China’s ruling party. “This does not mean that he has any good relations with the Chinese government — he has no way to return to China,” Colin Wu tweeted.

As another note on the regulatory pressure on the crypto market, U.S. Senator Elizabeth Warren urged Treasury Secretary Janet Yellen asking for greater regulation of the crypto industry.

As one of the U.S. Congress’s most prominent crypto skeptics, Warren warned the crypto market risks to the financial stability and the economy of the country. She asked Yellen to lead the development of “a coordinated and cohesive regulatory strategy to mitigate the growing risks that cryptocurrencies pose to the financial system”.

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