New collaboration aims to shape onchain robotics, AI, and tokenized machine assets within a regulated framework
Dubai is accelerating its role as a global leader in blockchain and AI regulation with a new partnership between the Virtual Assets Regulatory Authority (VARA) and peaq, a decentralized physical infrastructure (DePIN) protocol. The two entities have signed a memorandum of understanding (MoU) to create a comprehensive regulatory framework for the emerging machine economy — a new sector where robots, connected devices, and AI systems operate autonomously on blockchain networks.
Building the Machine Economy Framework
The agreement focuses on developing policies under peaq’s Machine Economy Free Zone, a controlled environment launched earlier this year to test real-world applications of robotics and AI within decentralized ecosystems. The partnership will include regulatory guidance for startups, joint training programs on compliance and blockchain integration, and data-sharing initiatives to strengthen research and policy development.
According to peaq co-founder Max Thake, this collaboration “represents an important commitment from both parties to bring the Machine Economy to life in a compliant way and enable people to participate, build and benefit from an entirely new economic sector.”
Integrating AI, Robotics, and Tokenized Assets
Peaq operates as a layer-1 blockchain purpose-built for the machine economy, enabling devices and robots to own digital assets, earn income, and exchange data securely. It underpins the growing DePIN movement and the tokenization of real-world assets (RWAs) — a trend transforming industries from logistics to mobility.
VARA CEO Matthew White highlighted Dubai’s strategic vision, stating that the initiative aims “to position Dubai as the global benchmark for the safe and sustainable growth of this next-generation asset class.”
Dubai’s Regulatory Momentum
Since establishing VARA in 2022, Dubai has rapidly evolved into a Web3 innovation hub, implementing progressive regulations for crypto, RWAs, and digital assets. Recent collaborations with the Dubai Multi Commodities Centre (DMCC) and the Securities and Commodities Authority (SCA) further align national policies to streamline licensing and enhance investor confidence.
The partnership between VARA and peaq marks a major step toward regulating the decentralized machine economy, bridging AI, robotics, and blockchain under one compliant ecosystem. As Dubai strengthens its regulatory infrastructure, it continues to attract global innovators and high-net-worth investors, positioning itself as a pioneer in next-generation digital economies.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.