Dubai’s VARA partners with DePIN protocol Peaq to establish a regulatory framework for tokenized machines and advanced on-chain robotics technology.
The decentralized physical infrastructure (DePIN) protocol Peaq has signed a crucial memorandum of understanding. This partnership is with the Virtual Assets Regulatory Authority (VARA) of Dubai. Thus, the main aim is to evolve a clear regulatory framework. This framework would be able to handle advanced on-chain robotics and all tokenized machines effectively. This partnership signifies a significant commitment to the safe governance of future digital asset classes.
Peaq’s Machine Economy Free Zone Recognized for Regulatory Support
Specifically, the memorandum is based on the Layer-1 blockchain technology developed by Peaq. It is concerned with the key Machine Economy Free Zone (MEFZ) program. Further collaboration also involves joint training in successfully implementing technology and compliance. The partnership also includes the sharing of important data to inform sector research and regulation. Moreover, the agreement opens the way for a number of plans for future work. These will strategically develop the Machine Economy in the UAE.
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In addition, the memorandum was signed officially at GITEX GLOBAL 2025. Hence, it provides the basis for the necessary regulatory advice. This documentation is aimed at projects actively developing on the Peaq protocol. In addition, it includes crucial talent education and required data reporting. Now, production machines that continuously produce value form a new asset class. These are very dynamic real-world assets (RWAs).
Peaq recently launched the first tokenized robo-farm in the world in Hong Kong. In addition, it introduced a new Web3 x Robotics software development kit (SDK). This MoU extends Peaq’s Machine Economy Free Zone in the UAE effectively. Ultimately, this move will help to bring this promising new virtual asset class to the nation. This will occur in a fully compliant and secure manner.
The deal also goes a long way in promoting the use of on-chain robotics in the nation. This memorandum comes in the wake of the announcement of the Financial Sector Strategy of Dubai. Hence, this strategy will further enhance the compliant growth of the entire virtual asset ecosystem. Venture Assets Regulation (VARA) is navigating the much-needed path ahead for this trendy industry.
Dubai’s VARA Deepens Collaboration with Peaq on Web3 Development
In particular, the MoU builds on the discussion that has taken place between the two parties during the past months. Importantly, the partnership has four key development strategic areas of focus. First of all, it offers specific support to the MEFZ initiative. The MEFZ is recognized by VARA as an important regulatory sandbox. Secondly, through the parties, new projects will be led successfully. These projects are being developed on Peaq and are looking for VARA licenses.
VARA will also arrange important discussions with the relevant Dubai decision-makers on time. In turn, Peaq will give VARA valuable MEFZ-related information. In addition to this, Peaq will also present its suggestions for new regulations. It will also strive to highlight key issues that pose challenges to the industry’s growth actively. Third, both parties will work together to ensure that the necessary talent and knowledge are created.
They will ensure that professionals are trained in technical and compliance skills. Finally, the MoU grants the parties to exchange necessary economic data. In particular, Peaq will aggregate anonymized data on the ecosystem. VARA will use this data to conduct research in the critical sectors. Lastly, this can be used to create sustainable economic models of the new asset class.
