The Dubai Virtual Assets Regulatory Authority (VARA) signed a Memorandum of Understanding with peaq to establish a legal framework and conditions for the development of DePIN projects in the UAE.
peaq and VARA concluded the Memorandum of Understanding (MoU) aimed at creating the world’s first regulatory framework for decentralized physical infrastructure networks (DePIN) and other areas of the Machine Economy.
Under the agreement, VARA officially established the Machine Economy Free Zone (MEFZ) as an infrastructure and legal center — a regulatory sandbox and hub for the development of the Machine Economy in the UAE. Under the MoU, the regulator committed to providing MEFZ with tailored support, including organizing meetings with key government and business representatives.
peaq, in turn, will provide VARA with aggregated ecosystem data, regulatory recommendations, and analysis of barriers hindering industry growth.
The MoU opens a direct communication channel between developers, investors, and regulators, simplifies the licensing process, and creates conditions for implementing real DePIN apps and on-chain robotics in the UAE economy.
Key areas of cooperation include:
- regulatory support for Machine Economy projects;
- licensing guidance and legal support for companies building solutions on peaq;
- training specialists with specific technical and legal expertise;
- exchange of economic data to form sustainable market models.
VARA CEO Matthew White noted that Dubai aims to shape the future of the digital economy by opening new horizons, including the Machine Economy. Through this partnership with peaq, the companies are laying the groundwork for regulatory clarity in on-chain robotics, DePIN, and tokenized machines.
peaq Co-Founder Max Thake added that the UAE is one of the world leaders in Web3 technologies and applied robotics, and the initiative creates a foundation for a new economic model where everyone can own and earn through interaction with machines.
The agreement lays the groundwork for regulating tokenized machines (Machine RWAs), a new class of devices generating real economic value 24/7. DePIN projects will now have the opportunity to develop legally in accordance with Dubai’s virtual asset standards.
Read more about physical infrastructure blockchain solutions (DePIN) in the special article at CP Media.
