TLDR
- Peaq signs MOU with Dubai’s VARA to regulate onchain robotics and tokenized machines.
- Machine Economy Free Zone launched in July serves as testing ground for robotics and AI.
- VARA updated rulebook in May to clarify real-world asset issuance and distribution rules.
- Dubai-based crypto licenses now apply across entire UAE following VARA-SCA partnership.
Decentralized physical infrastructure protocol peaq has entered a regulatory partnership with Dubai’s Virtual Assets Regulatory Authority. The memorandum of understanding aims to establish standards for onchain robotics and tokenized machines. According to a Thursday press release, the agreement centers on peaq’s Machine Economy Free Zone.
The collaboration will extend beyond basic regulation to include practical guidance and education. Areas of cooperation encompass advisory services for projects seeking VARA licenses and joint training programs. Additionally, both parties will share data to advance research and regulatory development.
Machine Economy Free Zone Takes Center Stage
The Free Zone serves as the foundation for this regulatory initiative. Launched in July, the controlled environment allows developers to test robotics and AI within decentralized networks. Peaq co-founder Max Thake described the agreement as a significant commitment from both organizations.
He emphasized the partnership would enable compliant development of the Machine Economy. The framework will allow individuals to participate in and benefit from this emerging economic sector.
Blockchain Infrastructure Meets Regulatory Oversight
Peaq operates as a layer-1 blockchain specifically designed for the machine economy. The network enables connected devices and robots to own assets autonomously. These machines can also share data and generate income through various economic activities.
Meanwhile, VARA oversees Dubai’s entire cryptocurrency and digital asset ecosystem. Established in 2022, the regulatory agency manages licensing and compliance for virtual asset businesses. VARA CEO Matthew White stated the agency seeks to establish Dubai as the global benchmark. He highlighted the focus on safe and sustainable growth of next-generation asset classes.
Dubai Accelerates Digital Asset Regulation
The peaq partnership follows VARA’s recent strategic alliance with DMCC announced one week earlier. That collaboration focuses on developing standards for tokenized commodities across Dubai’s business free zone. However, VARA’s regulatory expansion extends beyond individual partnerships. Since March 2022, the agency has transformed Dubai into a leading blockchain innovation hub.
Notably, VARA updated its rulebook for virtual asset service providers on May 19. The amendments clarified rules around real-world asset issuance and distribution. Under these guidelines, entities can now issue RWAs and list them on secondary markets. Furthermore, VARA formed a strategic partnership with the UAE’s Securities and Commodities Authority in August. This agreement synchronizes digital asset regulation across the entire UAE. Dubai-based licenses now apply throughout the country under this unified framework.
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