Dubai has embarked on a significant initiative to regulate its emerging machine economy by partnering with the decentralized physical infrastructure protocol, peaq. This collaboration includes the signing of a memorandum of understanding (MoU) with the Virtual Assets Regulatory Authority (VARA), focusing on creating regulatory guidelines for onchain robotics and tokenized machines.

The announcement, made through a press release, highlights a collaborative effort to establish a Machine Economy Free Zone, which aims to provide a secure environment for testing robotics and AI applications within decentralized frameworks.

Co-founder of peaq, Max Thake, stated that this agreement signifies a substantial commitment from both parties to develop the machine economy in a compliant manner, allowing individuals to engage, innovate, and gain benefits from this emerging sector.

Humans and machines on peaq. Source: peaq.xyz

The framework not only encourages guidance for projects seeking VARA licenses but also includes joint training programs and data sharing for research and regulatory support.

VARA, established in 2022, serves as the governing body overseeing cryptocurrency and digital asset licensing and compliance within Dubai. The recent partnership follows a strategic alliance with DMCC, further enhancing regulatory structures for tokenized commodities. Matthew White, CEO of VARA, emphasized the importance of positioning Dubai as a model for the secure, sustainable advancement of this innovative asset class.

Dubai’s approach to cryptocurrency and blockchain has garnered attention, drawing a significant influx of high-net-worth individuals to the region, poised to bolster its stature as an industrious hub for digital assets.