The native cryptocurrency of The Open Network has retraced 6% from its 24-hour high after United Arab Emirates regulators refuted claims that staking Toncoin (TON) could create a pathway to UAE residency.

Toncoin initially shot up 10% to $3.03 on Sunday after The Open Network claimed that applicants staking $100,000 worth of Toncoin for three years make applicants eligible for the UAE’s golden visa program.

However, the cryptocurrency partially retraced after the Emirates News Agency shared a joint statement from several regulators denying that claim. 

TON is now trading at $2.84, a 6% decrease from its recently posted 24-hour high. 

UAE disputes golden visa claim

TON claimed that applicants who stake $100,000 worth of TON for three years and pay a one-time $35,000 processing fee would be eligible for a 10-year golden visa. 

Telegram CEO Pavel Durov added to the speculation by reposting the announcement on X from crypto influencer Ash Crypto on Sunday, though he has made no official comment. 

However, the Emirates News Agency later reported on Monday that the Federal Authority for Identity, Citizenship, Customs and Port Security, the Securities and Commodities Authority, and the Virtual Assets Regulatory Authority have said golden visas are not issued to digital asset holders.

They also clarified that digital currency investments are governed by specific regulations and are unrelated to golden visa eligibility.

“The authority further confirmed that digital currency investments are governed by specific regulations and are unrelated to golden visa eligibility. It urged investors to obtain information from credible, official sources to avoid misinformation or fraud,” the Emirates News Agency reported.

Cointelegraph reached out to the TON Foundation, President Manuel Stotz and CEO Max Crown for comment. 

Golden visa eligibility

The golden visa is a long-term residency visa introduced by the UAE government in 2019 to attract skilled individuals to the region.

It enables foreign nationals to live, work, and study in the UAE without needing a national sponsor, with visa durations ranging from five to 10 years, according to the Federal Authority for Identity, Citizenship, Customs and Port Security. 

To be eligible, users must meet strict criteria, such as having special skills, like being a doctor, scientist, or researcher.

Investors can receive a golden visa if they have public investments worth 2 million United Arab Emirates dirham ($544,000) or more.

Entrepreneurs can also be eligible if they own a registered startup recognized by the UAE authorities that is tech-based.