UAE Authorities Shut Down TON’s Controversial Staking-for-Visa Plan
In a rare joint statement, UAE regulators delivered a blunt three-word verdict on the TON Foundation’s viral staking-for-visa proposal: “no formal approval.” The July 7 announcement sent shockwaves through the crypto community, forcing the foundation into damage control mode as critics accused the project of premature hype.
The Proposal That Sparked Controversy
The TON Foundation had floated an ambitious plan allowing users to stake Toncoin (TON) in exchange for UAE residency visas—a scheme that quickly went viral across crypto social media. The foundation framed it as an exploratory discussion, but the public rollout suggested a near-finalized deal. UAE’s Securities and Commodities Authority (SCA) and the Dubai Financial Services Authority (DFSA) swiftly clarified they had “not issued any approvals” for such a program.
Regulatory Whiplash and Industry Reactions
This marks another high-profile case of crypto projects facing regulatory pushback after making bold claims. Industry analysts note the incident highlights:
- The growing scrutiny of crypto-linked residency programs
- UAE’s cautious approach despite its crypto-friendly reputation
- The risks of announcing partnerships before formal approvals
Crypto legal expert Mona El Isa commented: “The UAE wants innovation but won’t tolerate regulatory shortcuts. This public rebuke sends a clear message to all blockchain projects.”
TON’s Response and What’s Next
The TON Foundation maintains it was merely “testing the waters” with stakeholders. However, the episode has reignited debates about responsible marketing in crypto. With the UAE’s crypto regulations still evolving, projects eyeing the region may need to temper expectations until full compliance is achieved.
As the dust settles, the crypto industry watches whether TON will revise its approach or pivot to other jurisdictions with clearer regulatory pathways for such initiatives.
