More than 500 participatory share construction agreements are already registered on blockchain in Leningrad Region with the purpose of shareholders’ rights protection.
Early in February 2018, the Federal Service for State Registration, Cadastre and Cartography (Rosreestr) presented a project for blockchain-based system of registration of participatory share construction agreements at the press-conference that took place in the Interfax News Agency’s St. Petersburg office.
The implementation of the project started in January, when the first blockchain-based deal between Rosreestr, Housing Credit Agency and the Bank of Foreign Economic Activity (Vnesheconombank) was settled.
As of July 1, 540 participatory share construction agreements were registered on blockchain, as reported by the representatives of Rosreestr. The project is supported by the Shareholders’ Protection Fund.
As specified by Rosreestr, the new system applies blockchain service for storing information about all 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.
Not only does the implementation of blockchain protect the data against frauds, but also reduce public expenditure by 20%, the leading expert from the Russian Association of Blockchain and Cryptocurrency (RABAC) Danyil Zakomolkin said, while also noting that blockchain is being actively applied to real estate deals in many other countries in the world.
For instance, Bitfury has been partnering with the Georgian National Agency of Public Registry in a blockchain land tiling project for years already.
According to Danyil Zakomolkin, Russia stands a good chance of finding itself at the forefront of blockchain revolution, if certain conditions will be met:
“Most importantly, the legislators should not impose severe restrictions, which would nip the industry’s development in the bud.”