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Controversy Surrounds Toncoin’s Golden Visa Claim in the UAE
Toncoin recently witnessed a dramatic surge in its value, only to plummet shortly thereafter, following claims made by the TON Foundation that staking the cryptocurrency could secure investors a Golden Visa in the United Arab Emirates (UAE).
Overview of the Proposed Scheme
The TON Foundation proposed that by locking up US$100,000 (approximately AU$153,229) in Toncoin and paying an additional fee of US$35,000 (around AU$53,630), investors could qualify for a 10-year residency visa in the UAE. This innovative offer was framed as a unique alternative to traditional methods of obtaining such a visa, which typically requires significant investments in real estate or government bonds.
Max Crown, CEO of the TON Foundation, promoted the scheme vigorously, gaining considerable attention, especially when Telegram founder Pavel Durov reshared this information. Following Durov’s social media endorsement, Toncoin’s price spiked by 10%, reaching a temporary high of US$3.03 (AU$4.64) before the rally was abruptly curtailed.
Regulatory Backlash
However, the enthusiasm surrounding this claim was short-lived. On the following Monday, UAE regulators promptly dismissed the proposal. A joint statement released by key government entities, including the Securities and Commodities Authority and the Virtual Assets Regulatory Authority, clarified that any investment in digital assets does not provide a legal basis for residency. Furthermore, they reiterated that Toncoin is neither licensed nor regulated within the UAE jurisdiction, particularly in Dubai.
As a consequence of this regulatory clarification, Toncoin’s value experienced a sharp decline, falling to US$2.84 (AU$4.35) – a 6% drop from its earlier peak. UAE officials urged individuals to seek information only from sanctioned sources to mitigate the risks associated with misinformation, especially regarding financial incentives tied to immigration opportunities.
Implications of the Golden Visa Programme
Launched in 2019, the UAE’s Golden Visa programme aims to attract talented individuals and substantial investments into the country. It sets rigid eligibility parameters that include criteria such as holding at least AED 2 million (about AU$837,175) in public investments or establishing a government-approved entrepreneurial venture. The recent Toncoin saga has highlighted the rigorous standards governing visa acquisition in the UAE and the critical importance of adhering to regulatory frameworks.
In conclusion, while the promise of a residency visa through cryptocurrency sounds enticing, it underscores the necessity for due diligence and the understanding that not all financial opportunities present viable pathways for immigration. The incident serves as a potent reminder of the regulatory landscape that governs digital assets and the necessity of clear, honest communication in the investment domain.
