Changpeng “CZ” Zhao, the founder and former CEO of Binance, has raised eyebrows regarding a recent announcement related to obtaining UAE residency through cryptocurrency investments. During a weekend update, The Open Network introduced a proposal suggesting that individuals who stake a minimum of $100,000 worth of Toncoin (TON) for a period of three years, along with a $35,000 processing fee, could secure a 10-year Golden Visa in the UAE in under seven weeks. This development was reported by Cointelegraph.
CZ took to social media platform X to voice his skepticism, posting, “Is this real? It would be awesome IF it is true. But I got conflicting info so far.” He emphasized the absence of any confirmation from official UAE governmental outlets and expressed concerns about which regulatory body, if any, had authorized such an initiative.
Despite other social media reactions, including a nod of support from Telegram CEO Pavel Durov, who shared the announcement via crypto influencer Ash Crypto, CZ remained cautious, insisting on the importance of verifying such claims. Having personally undergone the process to acquire a Golden Visa, he is familiar with the residency requirements, and the lack of clear information raised significant concerns for him.
In the meantime, the market responded to the ambiguity surrounding the announcement, with the price of TON surging over 11% within hours, as reported by CoinMarketCap.
Subsequently, Cointelegraph underscored the lack of confirmation on official regulatory websites such as those of the Securities and Commodities Authority (SCA), Ras Al Khaimah Emirate DAO, the Virtual Asset Regulatory Authority (VARA), or the Abu Dhabi Global Market Authority at the time of their reporting.
In response to the growing rumors, UAE regulators took action, issuing a joint statement from the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP), VARA, and the SCA to clarify the situation. They unequivocally stated that crypto investors do not qualify for Golden Visas. “The ICP clarified that golden visas are issued according to clear and officially approved frameworks and criteria, which do not include digital currency investors,” the statement elaborated. Eligible candidates for Golden Visas include property investors, business owners, high-achieving students and graduates, scientists, and frontline workers.
VARA also cautioned investors to seek services only from licensed and regulated entities within the cryptocurrency space.
Emerging as a Crypto Hub
The UAE is rapidly positioning itself as a frontrunner in the crypto and blockchain domain, with frameworks and infrastructure designed to facilitate the operations of DeFi and Web3 companies. At Token2049 Dubai, an event attended by CZ, speakers highlighted the country’s proactive measures to bolster blockchain applications beyond mere digital currency exchanges.
A notable initiative is the Machine Economy Free Zone, launched in collaboration with blockchain platform peaq, aimed at creating a revenue-sharing model for machine-generated incomes. This pilot project focuses on decentralized physical infrastructure networks (DePINs) and serves to explore practical applications for token-based incentives.
In addition, Dubai is actively engaging in the tokenization of real estate. It was recently reported that a project involving the Dubai Land Department, the Dubai Futures Foundation, and the Central Bank of the UAE is the first of its kind licensed in the Middle East and North Africa. This initiative was paralleled by a major $3 billion blockchain real estate transaction that took place in May, coinciding with a notable uptick in property sales within the emirate.
(Photo by Mariia Shalabaieva)
See also: SEC drops charges against Binance, closing major case
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