TON Foundation Links UAE Golden Visa to Toncoin Staking, Price Surges 10-12%

The TON Foundation has introduced a novel program that links eligibility for the UAE Golden Visa with staking options in Toncoin. This initiative, announced by CEO Max Crown, allows individuals to stake $100,000 in Toncoin for a period of three years, in addition to a $35,000 processing fee. This move is aimed at broadening access to UAE residency through a unique investment mechanism.

Max Crown's announcement underscores the potential of this program to attract a wider range of applicants seeking UAE residency. However, it is important to note that despite the significant interest generated, there have been no direct endorsements from UAE authorities, which raises questions about the regulatory framework surrounding this initiative.

The TON Foundation's program represents a first-of-its-kind approach in the UAE, requiring participants to invest in Toncoin (TON) with an expected annual yield of 3% to 4%. This shift from traditional investment requirements could potentially attract high-net-worth individuals looking for alternative residency options. The program is managed by TON’s UAE-based partners and promises a swift approval process, taking less than seven weeks from document submission to visa confirmation. Additionally, the program extends coverage to immediate family members, including spouses, children, and parents, at no additional cost beyond standard government fees.

The market responded positively to the announcement, with Toncoin's price surging by 10-12% and trading volumes increasing sharply. However, the lack of official regulatory support from UAE authorities poses potential challenges and highlights the risks involved for stakeholders. The Federal Authority for Identity, Citizenship, Customs and Port Security (ICP), the Securities and Commodities Authority (SCA), and the Virtual Assets Regulatory Authority (VARA) issued a joint statement clarifying that digital currency investments are governed by specific regulations and are unrelated to Golden Visa eligibility. They urged investors to obtain information from credible, official sources to avoid misinformation or fraud. VARA also clarified that TON is neither licensed nor regulated by their authority.

Despite the denial from UAE authorities, the announcement initially sparked a surge in Toncoin’s price, which increased by over 10% following the news. However, some industry experts raised doubts about the significance of TON’s Golden Visa program, noting that it was not an official partnership with the UAE government. This initiative significantly lowers the entry point for residency compared to conventional UAE Golden Visa routes, which usually demand a minimum $540,000 investment in illiquid assets. The lower entry cost of $100,000 in staked TON was expected to attract the attention of high-net-worth individuals, or "whales," to consider TON as an option for residency.

The crypto-based residency program comes as the UAE continues to position itself as a primary destination for blockchain and crypto projects. The Dubai Financial Services Authority (DFSA) recently approved Ripple’s RLUSD stablecoin, and Dubai’s crypto regulator updated its guidelines to include provisions for real-world asset (RWA) tokenization. These developments, along with the attraction of over 600 crypto companies to the Dubai Multi Commodities Centre free zone, highlight the UAE’s commitment to becoming a leader in digital finance.