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The TON Foundation promised crypto investors a pathway to United Arab Emirates (UAE) residency through cryptocurrency staking, but government authorities immediately rejected the program’s legitimacy.
TON Foundation announced Saturday that investors could secure a 10-year UAE Golden Visa by staking $100,000 worth of Toncoin for three years and paying a $35,000 processing fee. The Dubai-based foundation claimed the program would process applications within seven weeks.
UAE authorities swiftly contradicted these claims. The Federal Authority for Identity, Citizenship, Customs and Port Security, the Securities and Commodities Authority, and the Virtual Assets Regulatory Authority issued a joint statement on Sunday evening, denying that cryptocurrency investments qualify for Golden Visas.
“Digital currency investments are governed by specific regulations and are unrelated to golden visa eligibility,” the authorities stated through Emirates News Agency.
The program’s partner, crypto travel firm Peravel, defended the offering. CEO Ehsan Sattari told The Block that applicants would face no profession, degree, or job requirements typically associated with Golden Visa applications.
“We work strictly within the government’s authorized and approved Golden Visa process,” Sattari said. He claimed the TON Foundation had established official connections and expected formal announcements through TON’s channels.
However, VARA clarified that “the company TON is neither licensed nor regulated by VARA.” Traditional Golden Visa routes require substantial investments in real estate, entrepreneurship, or exceptional achievements in education or career development.
Toncoin’s price surged over 10% following the announcement, reaching approximately $3.02. The token gained despite the regulatory pushback, suggesting market confusion about the program’s legitimacy.
The controversy highlights broader tensions around the UAE’s crypto hub ambitions. Dubai has attracted over 600 crypto companies to its Multi Commodities Centre free zone and recorded more than $34 billion in cryptocurrency transfers during the 12 months ending June 2024.
Binance founder Changpeng Zhao expressed conditional interest in creating a similar program for BNB tokens. “We will definitely try to get it on BNB too,” Zhao posted on X, but only if the program represented an official UAE partnership.
“I’d expect something like this to have a government partnership, and announcement. It might still be true, just saying I haven’t been able to verify,” Zhao added.
Sigil Fund partner Joe HedgeHog dismissed it as a proxy arrangement, writing that the third-party provider “could have used FARTCOIN instead” of TON.
TON Foundation CEO Max Crown thanked “our partners in the UAE for their vision, support, and trust” in a post reposted by Telegram CEO Pavel Durov. The foundation promised additional information would be provided Monday, though no official statement materialized by publication time.
Authorities urged investors to verify information through official government channels and warned against engaging with unverified online offers. They emphasized that legitimate Golden Visa requirements remain unchanged, focusing on real estate investments, entrepreneurial ventures, and exceptional talent categories.
