Toncoin (TON) price fell about 12% on July 7 after United Arab Emirates (UAE) regulators denied claims that staking the token could make applicants eligible for the country’s popular golden visa program.
The Open Network native token Toncoin rose nearly 10% on Sunday, climbing to around $3.03. The rally came after The Open Network announced that investors could secure a 10-year UAE golden visa by staking at least $100,000 worth of TON for three years and paying a $35,000 processing fee.
TON Foundation Pitched Staking as Fast-Track
On July 6, Max Crown, CEO of the TON Foundation, described the plan as a “groundbreaking initiative”.
The TON Foundation’s website claimed that participants could earn an estimated 3–4% annual yield on staked tokens during the three-year lock-up. The project also promised approval within seven weeks. It said the process would not require buying real estate or meeting standard income thresholds. The website claimed family members — including spouse, children, and parents — would be covered under the same visa at no extra cost except government fees. The staking would run through decentralized smart contracts on the TON blockchain. The Foundation said this ensures transparency and security.
Following the announcement, people started commenting on the news. CoinGecko co-founder Bobby Ong called the offer an “amazing story” that could bring big holders but said he hoped it would not be a short-term hype play. Joe HedgedHog, an investment partner at Sigil Fund, argued this was not an official UAE government partnership but rather a third-party legal firm using TON staking as a proxy to help clients apply for the golden visa under the entrepreneur category. He added that the firm could have used any token. The staking only acted as a utility sink for TON.
Gearbox Protocol’s ivangbi claimed the offer was misleading. He said the legal agent receives the non-refundable $35,000 fee and submits applications to UAE authorities, which decide final approval. He noted that under current rules, staked TON is just one piece of proof and applicants still need to meet entrepreneur visa rules. For this category, UAE law requires entrepreneurs to show a project valued at least at AED 500,000. This must then be verified by an accredited UAE auditor, confirmed by a local authority as innovative, and supported by a licensed UAE business incubator.
UAE Confirms No Crypto Shortcut for Golden Visa
However, UAE state news agency WAM later published a joint statement from three government bodies — the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP), the Securities and Commodities Authority (SCA), and Dubai’s Virtual Assets Regulatory Authority (VARA). The statement made clear that golden visas are not issued to digital asset investors.
The authority confirmed that digital currency investments are governed by specific regulations and are unrelated to golden visa eligibility.
WAM reported.
Officials also warned investors to check information with official sources to avoid fraud.
Telegram CEO Pavel Durov reposted the announcement on X, boosting speculation. Former Binance CEO Changpeng Zhao (CZ) reacted with skepticism, noting there was no confirmation from any official government website. “Is this real? It would be awesome IF it is true,” CZ posted, adding, “I got conflicting info so far.” He also said that staking might be a regulated activity for which TON does not have local approval. He stressed that a genuine government agreement is needed for any crypto-based visa offer to be real.
Despite Durov’s repost, regulators confirmed no change in the UAE’s residency rules.
What is the UAE Golden Visa?
The UAE’s golden visa is a long-term residency permit launched in 2019 to attract skilled professionals and investors. The visa allows foreigners to live, work, or study in the UAE without a local sponsor.
To qualify, investors must meet strict conditions. For example, eligible categories include property investors with at least AED 2 million ($544,000) in public investments, entrepreneurs with recognized innovative startups that pass auditor checks, and highly skilled individuals like doctors, scientists, or researchers.
While the UAE has emerged as a crypto-friendly region with active support for blockchain companies, officials have kept golden visa pathways limited to regulated categories. Dubai recently hosted major blockchain events and launched new free zones for AI and decentralized infrastructure. However, VARA emphasized that crypto investments must go through licensed firms and that golden visa eligibility remains separate.
Toncoin’s price gave up its Sunday gains after the clarification. Toncoin now trades at around $2.78, down 12.8% over the past month. Its market cap sits near $6.88 billion, with daily trading volume above $524 million.
The Open Network has not issued an official comment addressing the government’s denial as of press time.
