The Federal Service for State Registration, Cadastre and Cartography (Rosreestr) has presented a project for blockchain service-based system of registration of participatory share construction agreements at the press-conference held yesterday in the Interfax New Agency’s St. Petersburg office, as reported by the District Administration’s press-office. Among the speakers were the top officials from Rosreestr and the Bank of Foreign Economic Activity.
The representatives of Rosreestr commented explicitly on the prospective use of blockchain technology as a means of protection of the shareholders’ rights.
In accordance with the applicable Law, Russian real estate developers are currently obliged to contribute 1.2 percent of the value of each participatory share construction agreement to the Shareholders’ Protection Fund. At the same time, the Fund has to confirm the developers’ contributions to Rosreestr on a regular basis.
The new system will apply blockchain service for storing information about all such contributions made by developers before these amounts are transferred to the Fund’s escrow account, thus enabling Rosreestr to use this database in a real-time mode for prompt decision making and service provision.
On January 31, the representatives of Rosreestr spoke of the pilot projects for blockchain-based registration of rights being run in the Leningrad District.