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The decentralized physical infrastructure (DePIN) protocol peaq has signed a memorandum of understanding with the Dubai Virtual Asset Regulatory Authority (VARA) to develop a regulatory framework for onchain robotics and tokenized machines.
According to a Thursday press release liberationthe memorandum focuses on peaq’s Machine Economy Free Zone, with additional areas of collaboration including guidance for projects seeking VARA licenses, joint technology and compliance training initiatives, and data sharing to support research and regulation.
Launched in July, the Machine Economy Free Zone is a controlled environment to test how robotics and AI can work in decentralized networks.
Max Thake, co-founder of Peaq, said the agreement “represents an important commitment by both parties to fully bring the Machine Economy to life and enable people to participate in, build and benefit from an entirely new economic sector.”
Peaq is a layer 1 blockchain for the machine economy, a network where connected devices and robots can own assets, share data and gain income It supports DePIN and real-world tokenized assets.
VARA is Dubai’s regulatory agency for cryptocurrencies and digital assets. Established in 2022, it oversees licensing, compliance and policy for virtual asset companies across the emirate.
The announcement came about a week after VARA formed a strategic partnership with DMCCCommodities supported by the government of Dubai and the free business zone, to develop a regulatory framework for tokenized trades.
VARA CEO Matthew White said the agency aims to “position Dubai as the global benchmark for the safe and sustainable growth of this next-generation asset class.”
Related: Singapore, UAE are the ‘most crypto-obsessed’ countries: Report
Dubai is the crypto hub of the UAE
Since its formation in March 2022 at oversee the regulation of crypto and Web3VARA has helped transform Dubai, and the wider UAE, into one of the world’s leading digital assets and blockchain innovation hubs.
On May 19, VARA updated its rulebook for virtual asset service providers (VASP) operating in the country, clarifying Issuance and distribution of RWA. With the new rules, people can issue RWAs and list them on secondary markets, according to the United Arab Emirates-based law firm NeosLegal.
In August, VARA and the Securities and Commodities Authority (SCA) of the UAE formed a strategic partnership to synchronize their approach to the regulation of digital assets. Under the deal, the Dubai-based licenses will apply to all of the UAE.
On September 22, the UAE signed the Multilateral Competent Authority Agreement under the Crypto-Asset Reporting Framework (CARF) to establish automatic sharing of tax information on crypto assets between member countries. The Ministry of Finance said the framework will come into effect in 2027, with the first data exchanges set for 2028.
Dubai and the UAE’s approach to digital assets has, unsurprisingly, attracted a migration of high net worth crypto investors. The UAE has become the main destination for migrating millionaires, with around 9,800 expected to move there in 2025.
Chase Ergen, board member of the crypto investment company DeFi Technologies, predicts that the crypto sector will grow the second largest industry in the UAE in five years.
Magazine: Crypto City: Guide to Dubai
