The Decentralized Physical Infrastructure Protocol (DePIN) has signed a memorandum of understanding with the Dubai Virtual Assets Regulatory Authority (VARA) to develop a regulatory framework for onchain bots and token machines.
According to what was reported by the press on Thursday He releasesThe memorandum focuses on the Automated Economy Free Zone at Beck, with additional areas of cooperation including guidance for projects seeking VARA licences, joint training initiatives in technology and compliance, and data sharing to support research and regulation.
Launched in July, the Machine Economy Free Zone is a controlled environment for testing how robots and artificial intelligence work within decentralized networks.
Max Thicke, co-founder of Peaq, said the agreement “represents an important commitment from both parties to bring the machine economy to life in a compatible way and enable people to share, build and benefit from an entirely new economic sector.”
Peaq is a layer-one blockchain of the machine economy, a network where connected machines and robots can own assets and share data He wins income. It supports DePIN and token real assets.
VARA is Dubai’s regulatory agency for cryptocurrencies and digital assets. Founded in 2022, it oversees licensing, compliance and policy for virtual asset businesses across the emirate.
The announcement came about a week after VARA was formed Strategic partnership with Dubai Multi Commodities Centrea business and commodity free zone supported by the Dubai government, to develop a regulatory framework for tokenized goods.
Matthew White, CEO of VARA, said the agency aims to “position Dubai as a global benchmark for the safe and sustainable growth of the next generation asset class.”
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Since its establishment in March 2022 to Overseeing crypto and Web3 regulationVARA has helped transform Dubai, and the UAE more broadly, into one of the world’s leading digital assets and blockchain innovation hubs.
On May 19, VARA updated its rulebook for virtual asset service providers (VASPs) operating in the country, clarifying Issue and distribute RWA. With the new rules, people can issue RWAs and list them on secondary markets, according to UAE-based law firm NeosLegal.
In August, VARA and the UAE Securities and Commodities Authority (SCA) Formed a strategic partnership To synchronize their approach to regulating digital assets. Under the agreement, Dubai-based licenses will apply to the entire UAE.
On September 22, the UAE signed a multilateral Competent Authority Agreement under the Cryptoassets Reporting Framework (CARF) to establish Automatically exchange tax information on crypto-assets between member states. The Finance Ministry said the framework will come into force in 2027, with the first data exchange set for 2028.
It is not surprising that Dubai and the UAE’s approach to digital assets has attracted immigration High net worth crypto investors. The UAE has become the leading destination for migrant millionaires, with around 9,800 of them expected to move elsewhere. there In 2025.
Chase Ergen, board member of cryptocurrency investment firm DeFi Technologies, expects the cryptocurrency sector to grow The second largest industry in the United Arab Emirates Within five years.
magazine: Crypto City: Dubai Guide
