Update (July 6, 12 pm UTC): This article has been updated to include comments from Sigil Fund partner Joe HedgeHog.
Update (July 6, 11:13 pm UTC): This article has been substantially updated to include the denial from the UAE press office.
The Open Network (TON), the blockchain platform spun out of Telegram, unveiled what it described as a new pathway to United Arab Emirates residency, offering 10-year golden visas to applicants who stake $100,000 worth of Toncoin for three years and pay a one-time $35,000 processing fee.
“Secure your Golden Visa in under 7 weeks from document submission to the Visa Office,” TON announced Saturday, detailing that its UAE-based partners will manage the visa processing and residency status confirmation.
However, the Emirates News Agency said later in a press release that the Federal Authority for Identity, Citizenship, Customs and Port Security, the Securities and Commodities Authority, and the Virtual Assets Regulatory Authority have issued a joint statement that golden visas are not issued to digital asset holders.
“The authority further confirmed that digital currency investments are governed by specific regulations and are unrelated to golden visa eligibility. It urged investors to obtain information from credible, official sources to avoid misinformation or fraud,” the Emirates News Agency said.
According to the press release, VARA also clarified that the company TON is neither licensed nor regulated by the Virtual Assets Regulatory Authority.
According to the original claim, applicants retain control of their assets during the staking period through a decentralized smart contract verifiable on the TON blockchain. Furthermore, the program promises estimated annual yields of 3% to 4% on staked assets, adding an incentive for crypto investors.
The golden visa would supposedly extend coverage to immediate family members, including spouses, children and parents, at no additional cost beyond standard government fees.
Related: Toncoin surges as Pavel Durov leaves France after months
TON lowers golden visa entry cost by 80%
Conventional UAE golden visa routes usually demand a minimum $540,000 investment in illiquid assets. In contrast, TON’s program was suggesting just $100,000 in staked Toncoin (TON), offering a significantly lower entry point.
“The entry is 5x lower than an equivalent real estate / FD investment and will certainly get the attention of whales to take a look at TON and consider this as an option,” Bobby Ong, co-founder of CoinGecko, wrote on X.
Following the announcement, Toncoin’s price surged over 10%. At the time of writing, the token is trading at around $2.98, up by more than 8% over the past day. The token is still down by more than 60% over the past year, according to data from CoinMarketCap.
However, some have raised doubts about the significance of TON’s golden visa program, noting that it isn’t an official partnership with the UAE government.
“3rd party provider is using TON as a proxy to help their clients get golden visa for entrepreneurs. They could have used FARTCOIN instead,” Sigil Fund partner Joe HedgeHog wrote on X.
Related: TON blockchain network back online after brief outage
UAE to cement status as blockchain hub
The crypto-based residency program comes as the UAE pushes to establish itself as a primary destination for blockchain and crypto projects.
Last month, the Dubai Financial Services Authority, the financial regulator in charge of the Dubai International Financial Centre, approved Ripple’s RLUSD stablecoin.
In May, Dubai’s crypto regulator updated its guidelines to include provisions for real-world asset tokenization. Lawyer Irina Heaver told Cointelegraph that these rules give issuers and exchanges a clear path to launch and trade tokenized real estate assets.
Meanwhile, the Dubai Multi Commodities Centre free zone has attracted over 600 crypto companies, with more firms flocking to the Dubai International Financial Centre and One Central district as the country positions itself as a leader in digital finance.
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Cointelegraph by Amin Haqshanas