Toncoin Drops 6% After UAE Denies Golden Visa Claims

The native cryptocurrency of The Open Network, Toncoin, experienced a 6% decline after United Arab Emirates regulators refuted claims that staking Toncoin could create a pathway to UAE residency. The cryptocurrency had initially surged 10% to $3.03 on Sunday following an announcement by The Open Network that applicants staking $100,000 worth of Toncoin for three years would be eligible for the UAE’s golden visa program. However, this claim was later denied by several UAE regulators, leading to a partial retracement of the cryptocurrency's value.

The Open Network had claimed that applicants who stake $100,000 worth of Toncoin for three years and pay a one-time processing fee of $35,000 would be eligible for a 10-year golden visa. This announcement was further amplified by Telegram CEO Pavel Durov, who reposted the announcement on X from crypto influencer Ash Crypto on Sunday. However, the Emirates News Agency later reported that the Federal Authority for Identity, Citizenship, Customs and Port Security, the Securities and Commodities Authority, and the Virtual Assets Regulatory Authority had clarified that golden visas are not issued to digital asset holders. They also emphasized that digital currency investments are governed by specific regulations and are unrelated to golden visa eligibility.

The denial of the golden visa claim by UAE authorities has raised questions about the legitimacy of the Toncoin and its potential as an investment opportunity. The golden visa program, introduced by the UAE government in 2019, is designed to attract skilled individuals to the region by offering long-term residency visas. These visas enable foreign nationals to live, work, and study in the UAE without needing a national sponsor, with durations ranging from five to 10 years. Eligibility for the golden visa program is strict, requiring applicants to meet specific criteria such as having special skills or making significant public investments.

The denial of the golden visa program has called into question the viability of Toncoin's services and the overall value of the cryptocurrency. Toncoin has been marketed as a decentralized cryptocurrency offering a range of financial services, including staking and smart contracts. The denial of the golden visa program has raised concerns about the future of Toncoin and its potential as an investment opportunity, particularly in light of the favorable tax laws and business-friendly environment in the UAE. The cryptocurrency's value has since decreased to $2.84, a 6% drop from its recently posted 24-hour high.