TON Cryptocurrency Plunges After UAE Authorities Refute Golden Visa Claims

Toncoin (TON) has retraced 6% from its recent highs, currently trading around $2.84, after United Arab Emirates authorities swiftly refuted

TON Cryptocurrency Plunges After UAE Authorities Refute Golden Visa Claims

Quick overview

  • Toncoin (TON) experienced a 6% drop after the UAE government denied claims linking staking the cryptocurrency to eligibility for a golden visa.
  • The TON Foundation's CEO had previously stated that a significant investment in Toncoin could lead to a 10-year golden visa, which was later refuted by UAE regulatory authorities.
  • The UAE's golden visa program does not include digital currency investments, despite the country's openness to cryptocurrencies.
  • The incident highlights the volatility in the cryptocurrency market and the importance of regulatory clarity in maintaining investor confidence.

On Monday, the Open Network’s native cryptocurrency, Toncoin (TON), fell sharply, down 6% from its 24-hour high. This was after the government of the United Arab Emirates formally dismissed reports that staking the digital asset may lead to the country’s highly sought-after golden visa program.

TON Cryptocurrency Plunges After UAE Authorities Refute Golden Visa Claims
Toncoin (TON) Dips After UAE Authorities Deny Golden Visa Claims, Raising Legitimacy Questions

TON Foundation’s False Claims Trigger Market Volatility

The cryptocurrency shot up 10–12% over the weekend, reaching about $3.03 when Max Crown, CEO of the TON Foundation, said that investors who staked $100,000 worth of Toncoin for three years and paid a $35,000 processing fee would be able to get a 10-year UAE golden visa. When Telegram CEO Pavel Durov shared the assertion on social networking site X, it got even more attention.

But the rally didn’t last long. Since then, TON has dropped to $2.84, which is 6% lower than its recent high, as regulatory bodies quickly proceeded to disprove the claims.

Joint Regulatory Response

The Emirates News Agency published a joint statement on Monday from many UAE regulatory authorities, such as the Federal Authority for Identity, Citizenship, Customs and Port Security, the Securities and Commodities Authority, and the Virtual Assets Regulatory Authority (VARA). The statement made it clear that there was no link between owning digital assets and being eligible for a golden visa.

“The authority also said that there are rules that govern investments in digital currencies and that these investments have nothing to do with getting a golden visa,” said the Emirates News Agency. Officials told investors to get information from reliable, official sources to avoid being misled or scammed.

VARA said that TON is neither licensed or controlled in Dubai, which makes the foundation’s allegations even less believable.

Golden Visa Program Requirements

The UAE’s golden visa program, which started in 2019, is meant to bring qualified workers and big investors to the area. The long-term resident visa lets foreigners live, work, and study in the UAE for five to ten years without needing a national sponsor.

To be eligible now, you need to have specific talents in areas like medical, science, or research. To be eligible, investors must have made at least 2 million UAE dirhams (about $544,000) in public investments. To be eligible, entrepreneurs must own registered, technology-based enterprises that are recognized by UAE authorities.

It’s interesting to note that the program doesn’t allow for digital currency investments, even though the UAE is generally open to using cryptocurrencies.

Market Impact and Industry Reaction

The event shows how unstable the bitcoin field can be when assertions are not backed up by evidence. The fast price changes show how quickly markets may respond to news, especially news about regulatory compliance and residency programs in places that are hospitable to cryptocurrencies.

People in the industry have questioned the TON Foundation’s assertions, and some well-known people in the crypto world were already doubtful of the arrangement’s reality before the official denial.

Regulatory Clarity

The quick action by the UAE government shows how serious the country is about keeping its immigration and digital asset rules clear. The remark is a reminder that even if the UAE is becoming known as a crypto powerhouse, traditional rules for investing in digital assets are still different from those for investing in other things.

There has been no response from the TON Foundation to demands for comment on the regulatory decision. This leaves questions about how the initial claims were made and whether any formal talks with UAE officials had taken place.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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