The team overseeing The Open Network (TON) blockchain has successfully completed its transition into a Swiss non-profit organization, marking a significant milestone for the TONcoin community. This move is attributed to Switzerland’s regulatory clarity in the cryptocurrency industry and its history of technological innovation, as stated in a press release by the TON Foundation.
Steve Yun, the President of the TON Foundation, emphasized the organization’s commitment to strong governance and transparency in accordance with Swiss regulations.
The TON blockchain, originally conceived by Telegram, operates on a proof-of-stake consensus mechanism and is designed for the development of Web3 decentralized applications (dApps). After encountering regulatory challenges with the U.S. Securities and Exchange Commission (SEC) in 2019, Telegram distanced itself from the project, transferring oversight to the TON Foundation.
As a Swiss-registered entity, the TON Foundation aims to foster the development and adoption of the TON ecosystem. The foundation plans to unveil its roadmap for promoting TON-focused education, development, and expansion by the fourth quarter of 2023.
Additionally, the TON Foundation intends to release comprehensive transparency reports detailing the tokenomics of TON’s native token, TONcoin. These reports will encompass historical distribution, including token issuance, partnership allocation, development, and community incentives, as well as the allocation of assets to support ecosystem growth.
Furthermore, the foundation will host an annual in-person event called “Gateway” to engage directly with the community and discuss various topics, including privacy, ownership, finance, gaming, and collectibles.
According to a TON Foundation spokesperson, the organization’s long-term goal is to decentralize governance as the community grows and becomes more self-sustaining, gradually reducing the foundation’s governance roles.
This move of TON to Switzerland is reflective of a broader trend in the cryptocurrency industry, where crypto firms are relocating away from the United States due to regulatory enforcement actions. Similar to Telegram in 2019, Ripple faced an SEC lawsuit in 2020, and Terraform Labs encountered regulatory challenges in 2023, both related to the issuance of unregistered securities in the form of their native tokens. The SEC has also initiated legal actions against exchanges like Coinbase and Binance, alleging the listing of unregistered crypto securities, including Cardano (ADA), Solana (SOL), and Polygon (MATIC).
The Ethereum Foundation also established its headquarters in Switzerland due to the favorable legal conditions. SEC Chairman Gary Gensler has suggested that trading in most cryptocurrencies, excluding Bitcoin, may be considered securities transactions.
