The Open Network (TON) Foundation encountered regulatory hurdles in the United Arab Emirates (UAE) over a premature golden visa announcement, a situation a local lawyer characterized as necessitating rigorous legal compliance.
NeosLegal founder Irina Heaver stated that the TON announcement aimed initially to benefit its community but faced complications due to the UAE’s complex and strict cryptocurrency regulations.
With oversight by five regulators for crypto asset service providers (CASP) in the UAE, including the stringent rules set by Dubai’s Virtual Assets Regulatory Authority (VARA), Heaver emphasized that promoting crypto deals requires full alignment with both federal and local laws for certain activities, regardless of local support.
TON Golden Visa Incident: Timeline
On Saturday, the TON Foundation announced a Toncoin (TON) staking program and claimed stakers could receive a ten-year UAE “Golden Visa” after depositing $100,000 worth of TON tokens, incurring a one-time $35,000 fee.
UAE regulators quickly denied the program, issuing a joint statement on Sunday that Golden Visas are not granted to digital asset holders. They also noted the TON-related company lacked VARA licensing or regulation.
A screenshot from a now-deleted Saturday announcement still referenced this claim.
On Sunday, TON clarified the announcement was premature and that work is proceeding “with a licensed partner independently.” Telegram CEO Pavel Durov had previously amplified the announcement by retweeting an Ash Crypto post claiming a TON-UAE partnership, but deleted that tweet the following Monday.
As of Tuesday morning UTC, the original Ash Crypto post remained live, while TON continued to distance itself legally from any direct association.
Early Warnings
Community figures voiced skepticism. Binance former CEO Changpeng Zhao questioned the announcement’s validity on Saturday, highlighting conflicting information and urging verification.
Despite initial excitement leading to a crypto price bump, the swift UAE denials caused the announcement to serve as a cautionary tale, underscoring the risks of hype-driven announcements unvetted for compliance.
Legal Review Imperative
Legal experts advised that hype often overshadows necessary regulatory checks. Irina Heaver cautioned that even established crypto spaces must adhere to local laws, using the UAE as an example. She stressed that a “knowledgeable crypto lawyer” can likely identify and mitigate legal issues in just two to three hours, potentially saving “millions of dirhams in fines” and regulatory complications.
“It’s a reminder that legal review isn’t a blocker — it’s a builder of sustainable growth.”
VARA declined further comment, citing its prior joint announcement.
