Peaq and Dubai's VARA Collaborate on Regulatory Framework for Onchain Robotics

According to Cointelegraph, decentralized physical infrastructure protocol peaq has entered into a memorandum of understanding with Dubai’s Virtual Assets Regulatory Authority (VARA) to establish a regulatory framework for onchain robotics and tokenized machines. This agreement focuses on peaq’s Machine Economy Free Zone, which serves as a controlled environment to explore the integration of robotics and artificial intelligence within decentralized networks. The collaboration also includes guidance for projects seeking VARA licenses, joint training initiatives in technology and compliance, and data sharing to support research and regulation. Peaq, a layer-1 blockchain designed for the machine economy, facilitates a network where connected devices and robots can own assets, share data, and generate income. This initiative underpins decentralized physical infrastructure networks (DePIN) and tokenized real-world assets. VARA, established in 2022, is Dubai’s regulatory agency for cryptocurrencies and digital assets, overseeing licensing, compliance, and policy for virtual asset businesses across the emirate. The announcement follows VARA's recent strategic partnership with DMCC, Dubai’s government-backed commodities and business free zone, aimed at developing a regulatory framework for tokenized commodities. Dubai and the United Arab Emirates have been proactive in advancing their digital assets and blockchain innovation landscape. Since VARA's inception in March 2022, the agency has played a pivotal role in transforming Dubai into a leading hub for digital assets. VARA updated its rulebook for virtual asset service providers in May, clarifying the issuance and distribution of real-world assets (RWAs). Additionally, VARA and the UAE’s Securities and Commodities Authority formed a strategic partnership in August to synchronize their regulatory approach to digital assets, extending Dubai-based licenses across the UAE. The UAE's commitment to digital asset regulation has attracted high-net-worth crypto investors, making it a prime destination for migrating millionaires. The UAE is expected to welcome approximately 9,800 millionaires by 2025, further solidifying its position as a global leader in digital asset innovation. Chase Ergen, a board member at DeFi Technologies, anticipates that the crypto sector will become the UAE’s second-largest industry within five years. This strategic focus on digital assets underscores Dubai and the UAE's ambition to establish themselves as benchmarks for safe and sustainable growth in the next generation asset class.