The supervisory team responsible for overseeing The Open Network (TON) blockchain has successfully completed its transformation into a Swiss non-profit entity.
According to an official statement released by the TON Foundation, this development signifies a “new chapter for the TONcoin community” due to Switzerland’s well-defined regulatory framework for the cryptocurrency industry and its track record of technological advancement.
In a formal declaration, TON Foundation President Steve Yun affirmed the organization’s commitment to “maintain robust governance and transparency in accordance with Swiss regulatory standards.”
The TON blockchain, initially conceived by Telegram as a proof-of-stake blockchain designed for constructing Web3 decentralized applications, encountered regulatory challenges with the U.S. Securities and Exchange Commission (SEC) prior to its intended launch in 2019. Telegram subsequently disassociated itself from the project, relinquishing oversight to the present-day TON Foundation.
This Swiss-registered entity actively promotes the development and adoption of the TON ecosystem, with plans to unveil its roadmap for fostering TON-focused education, development, and expansion by the fourth quarter of 2023.
Additionally, the TON Foundation intends to publish comprehensive “transparency reports” detailing the tokenomics of the network’s native cryptocurrency, TONcoin. These reports will encompass historical distribution information, including details on token issuance, partnership allocations, development, and community incentives. Furthermore, they will outline how assets will be distributed to support the growth of the ecosystem.
Moreover, the Foundation is set to organize an annual in-person gathering known as “Gateway,” aimed at fostering direct and meaningful interactions with its community. During these gatherings, various discussions encompassing subjects such as privacy, ownership, finance, gaming, collectibles, and more will take center stage.
According to a representative from the TON Foundation, as relayed to Decrypt, there are intentions to progressively decentralize governance over time. They stated, “Our objective is for the TON Foundation to gradually relinquish governance responsibilities as the community grows and attains greater self-sufficiency.”
Another Cryptocurrency Initiative Goes International
TON’s relocation to Switzerland mirrors a broader trend in which many cryptocurrency companies are opting to establish themselves outside the United States, seeking refuge from regulatory enforcement actions by U.S. authorities.
Similar to the SEC’s legal action against Telegram in 2019, the agency filed lawsuits against Ripple in 2020 and Terraform Labs in 2023, alleging the issuance of unregistered securities in the form of their blockchain’s native tokens. Additionally, the SEC has initiated legal proceedings against Coinbase and Binance for allegedly listing numerous unregistered cryptocurrency securities on their exchanges, which purportedly includes assets like Cardano (ADA), Solana (SOL), and Polygon (MATIC).
It’s worth noting that even the Ethereum Foundation has chosen to establish its headquarters in Switzerland, primarily due to the more favorable legal environment it offers. According to SEC Chairman Gary Gensler, the trading of most cryptocurrencies, excluding Bitcoin, is likely to be classified as securities transactions.
