- September 8, 2023
- Posted by: [email protected]
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The team in charge of The Open Network (TON) blockchain has successfully completed its transition into a Swiss non-profit organization, which is a significant achievement for the cryptocurrency community. This transformation signifies a pivotal moment for the TONcoin community, as it aligns with Switzerland’s well-established regulatory framework for the cryptocurrency industry and the country’s rich history of technological innovation.
President Steve Yun emphasized the TON Foundation’s commitment to sustaining robust governance and transparency principles governed by Swiss regulatory standards in an official statement made by the organization. This strategic move to Switzerland reflects the Foundation’s dedication to creating a secure and compliant environment for TON’s growth and development.
The TON blockchain, originally conceptualized by Telegram, is a proof-of-stake blockchain designed specifically for the creation of decentralized applications (dApps) in the Web3 ecosystem. However, its journey has been fraught with challenges, notably involving the U.S. Securities and Exchange Commission (SEC). In 2019, Telegram decided to disassociate itself from the project, transferring control and oversight to the TON Foundation.
The newly registered Swiss entity is now poised to champion TON’s ecosystem development and adoption. In line with its forward-looking vision, the Foundation intends to unveil an ambitious roadmap in Q4 2023. This roadmap will outline strategies aimed at promoting TON-focused education, fostering development, and facilitating expansion.
Additionally, the TON Foundation has committed to releasing comprehensive transparency reports. These reports will provide detailed insights into the network’s native token, TONcoin, covering aspects such as historical distribution, token issuance, partnership allocation, development initiatives, and community incentives. The objective is to ensure complete transparency and accountability in the allocation of assets to support the ecosystem’s growth.
To engage directly with the TON community, the Foundation will host an annual in-person event known as “Gateway.” This event will serve as a platform for meaningful discussions on a wide range of topics, including privacy, ownership, finance, gaming, collectibles, and more.
Importantly, the TON Foundation has articulated a commitment to decentralize governance gradually over time. As the community expands and matures, the Foundation intends to relinquish some of its governance roles, enabling the community to become more self-sustaining.
The decision to establish the TON Foundation in Switzerland aligns with a broader trend of cryptocurrency firms relocating away from the United States to evade regulatory enforcement actions. Notably, the SEC’s lawsuits against Ripple in 2020 and Terraform Labs in 2023, both related to the issuance of unregistered securities in the form of native tokens, have prompted concerns within the industry. The SEC has also initiated legal actions against leading exchanges like Coinbase and Binance for allegedly listing unregistered crypto securities, including assets such as Cardano (ADA), Solana (SOL), and Polygon (MATIC).
Switzerland’s appeal as a crypto-friendly jurisdiction has also led the Ethereum Foundation to establish its headquarters in the country. SEC Chairman Gary Gensler has suggested that most cryptocurrencies, excluding Bitcoin, may be classified as securities, further motivating projects like TON to seek regulatory clarity in jurisdictions known for their favorable legal conditions.
In summary, the TON Foundation’s successful transition to a Swiss non-profit organization represents a pivotal moment in the evolution of the TON blockchain ecosystem. This strategic move underscores the organization’s commitment to transparency, compliance, and community engagement, positioning TON for sustainable growth and development in the cryptocurrency landscape.
