365Crypto
Dubai is taking a futuristic leap—this time to regulate the machine economy. The city’s Virtual Assets Regulatory Authority (VARA) has signed a memorandum of understanding with the decentralized infrastructure network peaq. The deal sets the stage for rules around blockchain-powered robots, AI, and tokenized machines.
The Rise of the Machine Economy
The agreement focuses on peaq’s Machine Economy Free Zone, a sandbox where robotics and AI interact on decentralized networks. Projects will receive guidance on getting VARA licenses, plus joint training in tech and compliance. It’s not just red tape—VARA and peaq also plan to share research data to fine-tune future regulations.
(Note: A “Free Zone” is a designated area where companies test and operate with special legal frameworks.)
Building the Future — One Robot at a Time
Max Thake, peaq’s co-founder, said the partnership will make the machine economy “real, regulated, and open to everyone.” Peaq’s blockchain allows connected devices—think delivery drones or factory bots—to own assets, share data, and earn crypto.
(Footing: DePIN = Decentralized Physical Infrastructure Networks, where physical devices connect and earn via blockchain.)
VARA’s Growing Role in Dubai’s Crypto Ecosystem
VARA, formed in 2022, has quickly become the regulatory heartbeat of Dubai’s digital asset scene. Just last week, it teamed up with DMCC, Dubai’s government-backed commodities hub, to design tokenized commodities rules. VARA CEO Matthew White said the goal is to make Dubai “the global standard” for safe, sustainable asset innovation.
UAE’s Push for Crypto Leadership
Since 2022, Dubai’s rulebook has turned the UAE into a magnet for Web3 talent and investors. Updated laws now let firms issue and trade tokenized real-world assets (RWAs). A new tax-sharing framework is also coming under the Crypto-Asset Reporting Framework (CARF)—with global data exchange expected by 2028.
High-net-worth crypto investors are already moving in droves. Around 9,800 millionaires are expected to relocate to the UAE by 2025. Industry experts predict crypto could soon become the nation’s second-largest sector—right after oil.
