Dubai’s Virtual Assets Regulatory Authority (VARA) has signed a Memorandum of Understanding (MoU) with peaq, the blockchain platform for the Machine Economy, to establish a pioneering regulatory framework for on-chain robotics, Decentralized Physical Infrastructure Networks (DePIN), and tokenized machines. The landmark agreement, signed at GITEX GLOBAL 2025, aims to position the UAE as a global leader in this emerging digital asset class.
A Framework For A New Asset Class
The collaboration addresses the rise of the Machine Economy, where real-world machines, from autonomous vehicles to robotic farms, can generate value and operate as a new form of dynamic real-world asset (RWA). The MoU provides a clear pathway for projects building in this space to operate in a compliant manner within Dubai, fostering innovation while ensuring responsible oversight. This initiative builds on peaq’s previously announced Machine Economy Free Zone (MEFZ) in the UAE, a regulatory sandbox and infrastructure hub designed to accelerate the growth of DePIN and machine-centric applications.
Pillars of The Collaboration
The MoU outlines four key areas of joint initiative between VARA and peaq to cultivate a robust and sustainable Machine Economy ecosystem in the UAE:
- Machine Economy Free Zone Support: VARA will formally acknowledge the MEFZ and support it by facilitating discussions with key Dubai decision-makers. In return, peaq will provide MEFZ-related data and regulatory recommendations to address industry challenges.
- Regulatory Guidance: The parties will jointly guide projects building on the peaq platform that wish to apply for a VARA license. This includes co-hosting events on compliance and facilitating introductions between applicants and the regulatory authority.
- Talent and Knowledge Development: The agreement includes a commitment to collaborate on attracting and educating professionals with both the technical and compliance expertise required for the Machine Economy.
- Data Sharing: peaq will aggregate and share anonymized ecosystem data with VARA, enabling the regulator to conduct sector research and develop sustainable economic models for this new asset class.
Cementing Dubai’s Position as a Global Hub
This strategic partnership is a significant step toward creating regulatory clarity for builders in the DePIN, Robotics, and Machine RWA sectors, further establishing Dubai as a premier destination for Web3 innovation.
“Dubai is committed to shaping the future of the digital economy by embracing emerging frontiers like the Machine Economy,” said Matthew White, CEO of VARA. “Through this MoU with peaq, we are laying the groundwork for regulatory clarity in areas such as on-chain robotics, DePIN, and tokenized machines. By combining innovation with responsible oversight, we aim to position Dubai as the global benchmark for the safe and sustainable growth of this next generation asset class.”
Leonard Dorlöchter, co-founder of peaq, added, “The UAE is one of the world’s leading hubs for innovation in the fields of Web3 and applied robotics. This perfectly positions it to blaze the trail in machine tokenization, piloting this model and setting the benchmark and template for the rest of the world to follow.”
About peaq
peaq is the Machine Economy computer and operating system leading a global infrastructure revolution, empowering people to own and earn from the devices, robots, vehicles, and infrastructure they use. peaq is designed to be the go-to backbone for the human-centric Machine Economy, and is already home to 60+ applications in 20+ industries and to the millions of devices and machines that run on them. peaq serves as permissionless, borderless digital infrastructure for increasingly intelligent machines to serve all of humanity in the era of AI and automation.
About VARA
Established in March 2022, following the effect of Law No. 4 of 2022, VARA is the competent entity in charge of regulating, supervising, and overseeing Virtual Assets and Virtual Asset Activities in all commercial zones across the Emirate of Dubai, including Special Development Zones and Free Zones but excluding the Dubai International Financial Centre. VARA plays a central role in creating Dubai’s advanced legal framework to protect investors and establish international standards for Virtual Asset industry governance, while supporting the vision for a borderless economy.
Source: Zawya
