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Dubai’s VARA signs a historic MoU with peaq, recognizing the world’s first Machine Economy Free Zone for regulated onchain DePIN projects.
Author: Tanishq Bodh
October 16, 2025 – In a historic milestone for blockchain and robotics, Dubai’s Virtual Assets Regulatory Authority (VARA) has officially recognized peaq Machine Economy Free Zone (MEFZ) through a landmark Memorandum of Understanding (MoU). The agreement, signed on October 16 establishes the world’s first regulatory framework for the Machine Economy, marking Dubai as a global leader in governing virtual assets, DePIN infrastructure, and tokenized robotics.
Under the new agreement, VARA and peaq will collaborate to define licensing pathways, DePIN standards, and machine tokenization compliance for AI-driven robotics operating on blockchain. Developers building within the MEFZ gain direct access to regulators, funding channels, and enterprise partnerships, creating a transparent yet agile sandbox for decentralized automation.
“This MoU lays the groundwork for regulatory clarity in onchain robotics and tokenized machines,” said Marwan Jassim, CEO of VARA. He emphasized that the partnership aligns with Dubai’s long-term goal of balancing innovation with oversight. In return, peaq has pledged anonymized ecosystem data to support VARA’s policymaking and virtual asset research.
Launched in June 2025 with Pulsar Group, the MEFZ operates as Dubai’s dedicated machine economy hub. It provides testing grounds for AI robots, self-driving vehicles, and smart devices running on decentralized networks. Among its early initiatives is a Machine Tokenization Framework, enabling shared ownership of high-value assets such as industrial robots and electric vehicles. By fractionalizing ownership, peaq transforms machines into income-generating digital entities, allowing communities to co-own and profit from automation.
Founded in 2017 by Till Wendler, Leonard Dorlöchter, and Max Thake, peaq has rapidly emerged as the backbone of the MachineFi movement. The Layer-1 blockchain supports 5 million devices across 60+ DePIN projects, including noise-mapping app Silencio and AR/VR platform OVR. Peaq’s network records up to 49,000 transactions per second and serves 225,000 monthly active users, making it one of the most scalable blockchains built for physical infrastructure.
The MEFZ represents the next evolution of this momentum. It bridges AI-driven robotics, DePIN innovation, and enterprise adoption under one regulatory framework. “This agreement empowers builders to innovate without fear of regulatory uncertainty,” said Max Thake, co-founder of peaq. “It ensures the Machine Economy remains open, compliant, and beneficial to everyone, not just corporations.”
Notably, peaq’s partnerships with Airbus, Bosch, and Deutsche Telekom highlight its industrial credibility. Meanwhile, its $PEAQ token, capped at 4.2 billion supply, powers staking, governance, and network fees within the ecosystem.
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Dubai’s move reinforces its reputation as a regulatory pioneer in blockchain and tokenization. VARA’s updated framework for real-world assets (RWAs) already attracts pilots in energy and mobility. By incorporating peaq’s MEFZ, Dubai effectively becomes the first jurisdiction to recognize machine-to-machine finance as a regulated industry.
Experts believe this could reshape automation globally. Decentralized machine ownership reduces concentration risk and redistributes profits, while compliance guardrails protect users from opaque AI models. As co-founder Wendler previously noted, “The Machine Economy is unfolding before our eyes, one where communities own the robots that power the world.”
Looking ahead, peaq plans to expand its MEFZ program internationally, starting with Singapore and Germany. With the UAE at its center, the company’s vision of human-centric automation is no longer theoretical, it’s regulated, scalable, and real.
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