TON’s UAE Golden Visa Under Scrutiny as Official Sources Remain Silent
UAE Golden Visa Controversy: Regulators Deny Claims for Crypto Investors
Update on Golden Visa Eligibility for Digital Currency Stakeholders
As of July 6, 2023, at 11:30 PM UTC, recent reports regarding the issuance of UAE Golden Visas to digital currency investors have been officially refuted by UAE regulators.
Binance’s Former CEO Questions New Residency Pathway
Changpeng “CZ” Zhao, the former CEO of Binance, has raised concerns about the credibility of The Open Network’s announcement regarding a new residency pathway in the UAE. He highlighted the lack of any formal communication from government sources confirming the initiative.
The Open Network had previously stated that individuals could obtain a 10-year UAE Golden Visa by staking a minimum of $100,000 in Toncoin (TON) for three years, alongside a processing fee of $35,000. The process was reportedly designed to be completed in under seven weeks.
CZ expressed skepticism on social media, questioning the authenticity of the announcement. He noted, “Is this real? It would be fantastic if true, but I have received conflicting information.” He further pointed out the absence of any official government website confirming the “stake Ton for golden visa” update.
Community Reactions and Market Impact
Despite CZ’s reservations, some users on social media mentioned that Telegram’s CEO, Pavel Durov, had validated the announcement by sharing it on his platform. Nevertheless, CZ maintained a cautious approach, emphasizing the importance of verification.
The announcement had a significant impact on the market, with Toncoin’s value surging by over 11% within hours, as reported by CoinMarketCap.
Official Denial from UAE Authorities
Following these developments, UAE regulatory bodies, including the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP), the Securities and Commodities Authority (SCA), and the Virtual Asset Regulatory Authority (VARA), issued a joint statement dismissing claims that Golden Visas were available to cryptocurrency investors.
The ICP clarified that Golden Visas are granted based on established frameworks and criteria, which do not encompass digital currency investors. Eligible categories for the visa include real estate investors, entrepreneurs, exceptional talents, scientists, specialists, top students, and humanitarian pioneers.
VARA also urged investors to engage only with fully licensed and regulated entities when dealing with virtual assets.
UAE’s Growing Role in the Crypto Landscape
The UAE has rapidly established itself as a prominent hub for cryptocurrency and blockchain innovation, driven by a supportive regulatory framework and infrastructure conducive to decentralized finance (DeFi) and Web3 initiatives.
This was underscored at the recent Token2049 conference in Dubai, which CZ attended. The UAE has also introduced a Machine Economy Free Zone aimed at exploring the convergence of robotics, artificial intelligence, and decentralization. This initiative, developed in collaboration with the layer-1 blockchain peaq, seeks to reward token holders with a share of revenues generated from machine economy activities.
Additionally, the UAE is making strides in tokenized real estate, with Dubai launching the first licensed tokenized real estate project in the Middle East and North Africa. This initiative is a partnership involving the Central Bank of the UAE, the Dubai Futures Foundation, and the Dubai Land Department.
In May, a significant $3 billion real estate blockchain transaction contributed to a notable increase in property sales in Dubai.
Conclusion
The recent developments surrounding the Golden Visa for cryptocurrency investors highlight the complexities and uncertainties in the evolving landscape of digital assets. As the UAE continues to position itself as a leader in the crypto space, clarity and regulation will be essential for fostering investor confidence and ensuring compliance.
