The collaboration between Peaq and the Virtual Assets Regulatory Authority (VARA) of Dubai is a significant stride towards establishing regulations around the emerging machine economy, which incorporates robotics, artificial intelligence (AI), and tokenized real-world assets.
On October 5, in a recent announcement, it was highlighted that this memorandum centers around Peaq’s Machine Economy Free Zone, designed to facilitate innovation in compliance with regulations, which includes aiding various projects in obtaining VARA licenses through joint technology and compliance training and cooperative data sharing for research purposes.
Launched in July 2023, this initiative provides a controlled setting to explore the operational capabilities of robotics and AI within decentralized systems.
Max Thake, co-founder of Peaq, stated, “This agreement signifies a pivotal step by both parties to bring the Machine Economy to fruition in a compliant manner, allowing individuals to engage, create, and reap benefits from this novel economic sector.”
Humans and machines on Peaq.
Source: peaq.xyz
Peaq operates a layer-1 blockchain tailored for the machine economy, where devices and robots can own assets, exchange data, and generate income, thus supporting DePIN and tokenized real-world assets.
Established in 2022, VARA is responsible for overseeing the licensing, compliance, and regulations pertinent to cryptocurrency and digital asset entities in Dubai.
The announcement follows a recent strategic partnership between VARA and the DMCC, aimed at crafting a regulatory framework for tokenized commodities.
Matthew White, CEO of VARA, asserted, “We strive to position Dubai as a global reference point for the safe and sustainable development of this next-generation asset class.”
Dubai and the UAE’s Efforts in Crypto Regulation
Since its inception in March 2022, VARA has played a crucial role in transforming Dubai and the wider UAE into a premier hub for digital assets and blockchain innovation.
Recently, VARA revised its regulations governing virtual asset service providers (VASPs), clarifying rules about the issuance and trading of tokenized real-world assets (RWAs). This modification allows residents to issue RWAs while providing access to secondary markets.
Furthermore, VARA has formed partnerships with the Securities and Commodities Authority (SCA) to streamline the regulatory processes concerning digital assets applicable throughout the UAE.
On September 22, the UAE signed the Multilateral Competent Authority Agreement under the Crypto-Asset Reporting Framework (CARF), promising a system for sharing tax information related to crypto assets among member states, with implementation slated for 2027.
As Dubai continues to enhance its digital asset policies, it attracts a significant influx of high net-worth crypto investors, solidifying its reputation as a leading destination for migration, especially among affluent individuals.
