Authorities in the United Arab Emirates, 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 denied assertions made by The Open Network (TON) that a 10-year UAE Golden Visa could be obtained by staking $100,000 worth of Toncoin (TON) for three years, plus a $35,000 processing fee. The announcement, reported by Cryptos Newss and the Emirates News Agency, clarified that digital asset investments, including TON, do not qualify for Golden Visa eligibility, which requires investments like $544,000 (2M AED) in real estate or public assets. This rebuttal followed TON’s July 6 claim, amplified by Telegram CEO Pavel Durov’s repost on X, causing a 10-13% Toncoin price surge to $3.03.
The initial hype drove Toncoin’s 24-hour trading volume up 428-607% to $643.4 million, with the token hitting a 19-day high of $3.05, per CoinMarketCap. But following the UAE’s rejection, TON fell 6% to $2.84–$2.90, indicating that the market was sensitive to the clarity of the regulations. X posts from users like @SanjayWeb3 and @flipster_io captured the correction, noting the lack of government backing. Despite the pullback, TON’s $7.12-$7.17 billion market cap and 3-4% staking APY highlight its ecosystem strength, though it remains down 60% year-over-year.
Introduced in 2019, the UAE Golden Visa targets skilled professionals, entrepreneurs, and investors with criteria like $544,000 in real estate or tech startup ownership, not crypto assets. The TON program, managed by third-party UAE partners via decentralized smart contracts, promised a seven-week process and family inclusion, contrasting traditional illiquid investment routes. Critics, including Binance’s Changpeng Zhao and Sigil Fund’s Joe HedgedHog on X, questioned its legitimacy, noting the $35,000 fee benefits private agents, not the government, and lacks official endorsement. The UAE’s crypto-friendly policies, with Dubai hosting 600+ blockchain firms and $34 billion in 2024 crypto transfers, contrast this rejection, emphasizing regulated innovation over unverified claims.
The UAE’s statement underscores the need for investors to verify crypto-related claims through official channels to avoid scams, as TON’s program was a third-party initiative, not government-sanctioned. The price decline is consistent with past responses of the cryptocurrency market to regulatory resistance, such as TerraUSD’s 2022 collapse or China’s 2021 prohibition. While TON’s integration with Telegram’s ecosystem and staking tools (e.g., P2P.org, Ton Whales) supports adoption, regulatory skepticism may temper growth. Analysts suggest TON could stabilize if it leverages Dubai’s VARA approvals, but short-term volatility persists. The $3.7 trillion stablecoin market by 2030 remains a benchmark for crypto’s potential, though TON’s path hinges on regulatory alignment.
