UAE denies TON’s Golden Visa offer – Token dips 6% after official rebuke

• UAE authorities denied any hyperlink between Toncoin staking and the Golden Visa program.
• Binance’s CZ and consultants raised doubts over TON’s unusually low visa funding necessities.

Toncoin [TON] just lately made headlines after a pointy two-hour surge of over 12% on the eighth of July, fueled by buzz surrounding a supposed new residency pathway within the UAE.

The Open Community claimed that people may get hold of a 10-year UAE Golden Visa by staking $100,000 in Toncoin for 3 years, together with a $35,000 processing payment.

This announcement initially sparked excessive buying and selling volumes and investor enthusiasm.

Nonetheless, the thrill was short-lived as Toncoin’s worth quickly retraced by 6%.

UAE dismissed TON’s Golden Visa claims

The pullback adopted swift clarification from UAE authorities, who dismissed the staking-for-visa claims, placing the brakes on the token’s momentum. 

Key UAE authorities, together with the Federal Authority for Id, Citizenship, Customs and Port Safety (ICP), the Securities and Commodities Authority (SCA), and Dubai’s Digital Belongings Regulatory Authority (VARA)—have firmly denied any association linking Toncoin staking to the nation’s Golden Visa program.

In an official statement, the ICP clarified that Golden Visas are granted beneath well-defined and government-sanctioned classes, none of which embody cryptocurrency traders.

Eligible recipients, in accordance with present guidelines, are usually actual property traders, entrepreneurs, distinctive skills, scientists, excellent college students, humanitarian leaders, and frontline staff.

This clarification successfully debunked the notion that staking digital property like Toncoin may very well be a gateway to UAE residency.

Binance’s founder additionally questioned its legitimacy

Including to the skepticism, Binance founder Changpeng Zhao (CZ) additionally publicly questioned the credibility of The Open Community’s Golden Visa provide.

Highlighting inconsistencies, CZ famous that normal UAE Golden Visa purposes usually value round $1,000 when processed by licensed brokers, far lower than the $35,000 processing payment tied to TON staking.

In keeping with his sources, staking actions within the UAE fall beneath regulatory oversight, and any such initiative would require correct licensing from our bodies like VARA, SCA, or ADGM.

CZ added, 

“There are not any official authorities web sites with the stake TON for the golden visa replace. This program could be superior if it have been true.” 

As anticipated, CZ’s considerations highlighted the necessity for clear, verified data earlier than selling high-stakes token utility applications.

What’s extra?

One more reason for the skepticism surrounding TON’s residency provide was the evident distinction in funding necessities in comparison with conventional UAE Golden Visa routes.

Usually, candidates should make investments at the least $540,000 in illiquid property like actual property or long-term enterprise ventures.

In distinction, TON provided the identical 10-year residency in return for simply $100,000 value of staked tokens, an unusually low threshold that sharply deviated from established norms.

This stark disparity triggered purple flags amongst observers, who questioned this system’s legitimacy and emphasised the pressing want for regulatory readability in crypto-driven initiatives.

Remarking on this, Bobby Ong, co-founder of CoinGecko, stated, 

“The entry is 5x decrease than an equal actual property / FD funding and will definitely get the eye of whales to try TON and contemplate this as an possibility.” 

At press time, TON was buying and selling at a 2.23% decline after considerably stabilizing after this information, sitting at $2.81 per CoinMarketCap.