TON’s UAE Golden Visa Misstep Underscores Importance of Legal Due Diligence in Crypto Sector

A recent controversy involving The Open Network (TON) Foundation has become a cautionary tale for crypto projects navigating complex international regulations. The foundation’s premature announcement of a Toncoin-backed golden visa program in the United Arab Emirates (UAE) was swiftly shut down by local authorities — exposing the risks of skipping legal review in highly regulated markets.

On July 6, the TON Foundation unveiled what it called a golden visa initiative, promising UAE residency to Toncoin holders who staked $100,000 worth of the cryptocurrency for three years and paid a $35,000 processing fee. The move, aimed at benefiting the TON community, quickly captured attention — even garnering a retweet from Telegram CEO Pavel Durov and fueling a brief Toncoin price surge.

But within 24 hours, the celebration turned to scrutiny. UAE regulators released a joint statement disavowing the program, clarifying that golden visas are not issued in exchange for digital assets, and emphasized that the entity behind TON was neither licensed nor regulated in the Emirates. Dubai’s Virtual Assets Regulatory Authority (VARA) highlighted that the announcement violated local marketing and licensing rules, which are particularly strict for crypto-related financial offerings.

Regulatory Red Flags and Industry Reaction

The UAE's digital asset ecosystem is governed by at least five regulatory bodies, with VARA overseeing crypto marketing and service providers within Dubai. According to Irina Heaver, a UAE-based lawyer and founder of NeosLegal, the TON Foundation's misstep could have been avoided with a basic legal consultation.

“Even with support from local officials, crypto projects must still follow federal and local laws,” Heaver explained in an interview.

Activities like staking and token-related promotions fall under specific regulations that require formal approval.

Former Binance CEO Changpeng Zhao (CZ) was among the first to question the legitimacy of the announcement on social media, urging the crypto community to verify sources — no matter how high-profile they may be.

“It would be awesome IF it is true, but I got conflicting info.” Zhao wrote on X.

Damage Control and Clarifications

Following regulatory backlash, the TON Foundation removed the original announcement and clarified that the statement was premature. It added that it is working with an independently licensed UAE partner and is re-evaluating the program. Pavel Durov also deleted his retweet, distancing himself from the post by influencer Ash Crypto, which originally claimed a formal partnership between TON and the UAE government.

Clarifying the Status of the UAE Golden Visa Initiative

TON Foundation is aware of the premature announcement that circulated on X regarding a UAE Golden Visa initiative offered by TON. While we understand the community’s interest and enthusiasm, it’s

TON BlogTON Foundation

As of July 9, Ash Crypto’s original post remained live, though Durov’s endorsement had been withdrawn.

The episode had a tangible market impact. Toncoin saw a sharp uptick following the announcement, only to face a steep correction after the UAE’s regulatory rebuttal — underscoring how fast enthusiasm can turn into skepticism when compliance questions arise.

Legal Oversight: A Strategic Investment

Heaver stressed that legal reviews are not just red tape — they’re vital to ensuring long-term viability.

“It takes a knowledgeable crypto lawyer just two to three hours to review marketing materials and flag potential issues,” she said. “That quick check can save weeks of regulatory headaches and millions of dirhams in fines.”

She emphasized that the UAE has well-defined rules for crypto activities and that legal vetting should be part of any project’s launch strategy — not an afterthought.