UAE Denies Toncoin Staking Golden Visa Rumors

TLDR

• UAE regulators reject Toncoin staking golden visa claims.
• Toncoin’s price dropped 6% after regulatory denial.
• Investors advised to seek credible information sources.

In recent developments, the United Arab Emirates (UAE) has officially dismissed rumors about a scheme linking Toncoin (TON) staking to the country’s golden visa program. The golden visa typically offers long-term residency options to investors and skilled professionals. This denial followed a series of announcements and social media posts suggesting that staking Toncoin could make investors eligible for this prestigious residency.

The UAE’s regulatory bodies, including the Federal Authority for Identity, Citizenship, Customs and Port Security, the Securities and Commodities Authority, and the Virtual Assets Regulatory Authority (VARA), have categorically rejected any association between Toncoin staking and golden visa eligibility. Their joint statement, released via the Emirates News Agency (WAM), stressed that investment in digital currencies does not qualify one for the visa and advised investors to seek information from reliable sources.

A Disputed Proposal and Regulatory Clarifications

The situation escalated after The Open Network (TON Foundation) announced a supposed program that promised golden visas in exchange for a $100,000 worth of TON stake for three years, along with a $35,000 fee. Telegram CEO Pavel Durov further amplified the proposal’s reach by reposting the original announcement on X (Twitter) from influencer Ash Crypto. It’s important to note that Durov made no additional statements regarding his endorsement or rejection of the claim.

The Virtual Assets Regulatory Authority (VARA) specifically clarified that the TON Foundation is not licensed or regulated by them. This statement aimed to prevent misinformation and protect potential investors from invalid schemes. With the regulatory bodies stepping in, no official partnership, license, or government sanction was found for such a visa program involving Toncoin.

The Impact on Toncoin’s Market Performance

The misleading news surrounding Toncoin had a noticeable impact on its market performance. Following the initial announcement of the staking visa program, Toncoin’s value surged by 10%, reaching $3.03. However, after the UAE regulators issued their denial, the price dropped by 6%, bringing it to approximately $2.84. This resulted in a distinctive price volatility for Toncoin.

While this event significantly affected Toncoin, there was no observed impact on other major cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH). Additionally, no peculiar activity related to total value locked (TVL) or liquidity migration was reported. Analysts suggest that the short-lived rally and subsequent decline mirrored similar past scenarios where rumored crypto-related benefits were debunked.

Community Reactions and Guidance from Regulators

The incident has sparked widespread discussions across social media platforms, including Twitter and Telegram, with community members advising caution against scams and reiterating the need to rely on official government statements. Notable figures within the crypto community, such as Bobby Ong and other influencers, have not commented on the matter thus far.

Regulators have reiterated the importance of sourcing information from credible channels. An excerpt from VARA urges investors: “Investors [should] obtain information from credible, official sources to avoid misinformation or fraud.” This underscores the ongoing need for transparency and accountability within the crypto sector, especially concerning sensational claims like those involving residency benefits.