TON Foundation Offers UAE Golden Visa via Toncoin Staking, Price Surges 10-12%

The TON Foundation has launched an innovative program that allows individuals to obtain a 10-year UAE Golden Visa by staking $100,000 in TON tokens for a period of three years. This initiative includes a $35,000 processing fee and represents a significant reduction in the traditional investment threshold for the UAE Golden Visa, which typically requires approximately $540,000 in illiquid assets. The program is designed to attract crypto investors by offering a pathway to residency through the staking of TON tokens, a process that is facilitated through smart contracts on the TON blockchain, ensuring transparency and security.

The initiative has garnered considerable market interest, leading to a notable surge in Toncoin's price, which spiked 10–12% following the announcement. However, no significant movements were observed in other major cryptocurrencies like BTC and ETH. Critics have noted the capital-intensive nature of the initiative, raising financial barriers for some investors.

Despite the market reaction, UAE authorities, including the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP), the Securities and Commodities Authority (SCA), and the Virtual Assets Regulatory Authority (VARA), have refuted any connection between their Golden Visa program and cryptocurrencies. They stated that TON Foundation is not licensed by VARA, firmly dismissing the legitimacy of the residency offer linked to crypto investments. The ICP outlined that golden visa eligibility is limited to real estate investors, entrepreneurs, exceptional talents, scientists and specialists, top students and graduates, humanitarian pioneers, and frontline workers. VARA explicitly stated that TON is neither licensed nor regulated by the authorities. The SCA emphasized its commitment to international standards in financial sector regulation, stating that “digital currency investments are governed by specific regulations and are unrelated to golden visa eligibility.”

The three authorities urged the public to exercise caution and rely on official government websites for accurate information about visa requirements. They warned against engaging in unverified advertisements or offers circulating online. This clarification from the UAE government highlights the distinction between the TON Foundation's program and official government initiatives, emphasizing the importance of verifying information through official channels.

The economic implications of this announcement are significant given the potential financial risks involved in such a program. UAE officials have warned the public, stressing the illegitimacy of Toncoin as a residency pathway, highlighting the regulatory hurdles for such initiatives. If UAE authorities remain firm on their stance, the potential regulatory crackdown could endanger the project's credibility. Historically, similar initiatives rely on solid government backing, which Toncoin's program currently lacks, adding unpredictability to its long-term viability.