In 2021, the Government for Citizens State Corporation jointly with the STB implemented a pilot project on registration of rights to real estate using Blockchain technology.
The state Corporation continues to expand the types of services within the framework of the "Digital Mortgage" and since May 11, 2022, together with the STB, is implementing a pilot project already on registration of collateral of movable property that is not subject to mandatory state registration using Blockchain.
The clients of JSC "Bank Freedom Finance Kazakhstan" will be the first to use the new service, then JSC "Otbasy Bank" and JSC "Halyk Bank of Kazakhstan" will join.
When signing an equity participation agreement in housing construction using Blockchain technology, the client will be able to issue a pledge agreement for movable property with a second-tier bank and submit documents for registration in an online format. Movable property according to the agreement on shared participation in housing construction is the right of claim to participate in it.
If earlier registration took three days, now the whole process takes place in one hour.
The innovation simplifies for banks the process of issuing loans secured by movable property (property rights) in terms of online loan processing, reduces costs and shortens the time for issuing loans.
"Every year, the Government registers about 10 thousand pledges of movable property for citizens. And if earlier the registration process took 3 days, now, thanks to the use of Blockchain technology, the time has been reduced to 1 hour. Physical contact with the registration authority is completely excluded," said Suyenish Abdildin, Chairman of the Board of the Government for Citizens.
We add that the new service was introduced as part of the instruction of the Head of State on the de-bureaucratization of the state apparatus. According to Kassym-Jomart Tokayev, "decisions should be made quickly, based on real requests from businesses and citizens, within a maximum of three days, and preferably within a day."