Dubai VARA and peaq Partner to Establish Regulatory Sandbox for Machine Economy and DePIN

Dubai's Virtual Assets Regulatory Authority (VARA) has signed a Memorandum of Understanding (MOU) with peaq, a layer-1 blockchain for the Machine Economy, to regulate onchain robotics, Decentralized Physical Infrastructure Networks (DePIN), and tokenized machines. The agreement was formalized during GITEX 2025 and aims to build a Machine Economy in the UAE, where intelligent machines act as independent economic agents.

The collaboration focuses on four key areas: support for the Machine Economy Free Zone (MEFZ), a regulatory sandbox and infrastructure hub launched in July 2025; regulatory guidance for projects seeking VARA licenses; joint education initiatives on technical and compliance matters; and data sharing of anonymized ecosystem data for research. peaq will provide VARA with MEFZ-related data and recommendations, while VARA will facilitate discussions with Dubai decision-makers.

Leonard Dorlöchter, co-founder of peaq, stated, "The UAE is one of the world’s leading hubs for innovation in Web3 and applied robotics... This memorandum of understanding is a powerful foundation for that, paving the way for future collaborations and opportunities for the entire Machine Economy." Mathew White, CEO of VARA, emphasized Dubai's commitment to becoming a global benchmark for safe growth in this asset class.

peaq recently unveiled the world's first tokenized robo farm in Hong Kong and a Web3 and Robotics SDK. The DePIN sector, with a market cap of over $50 billion in 2024, is projected to reach $3.5 trillion by 2028, highlighting the potential impact of this regulatory framework.