Mikhail Nikitin: “Digital Assets in Russia Are Becoming a Systemic Business Tool”
Russia has introduced a mechanism for creating digital non-public joint-stock companies, marking a fundamentally new format for business development.
Russia’s largest securities registrar, Status, has been authorized to create digital non-public joint-stock companies. For the first time in the country’s history, company shares can be issued exclusively as digital financial assets. For the Russian economy, this represents an entirely new way of structuring and running businesses.
Mikhail Nikitin, a partner at 5D Consulting and head of international business and finance practice, explained the significance of the move in an exclusive comment to IT RUSSIA.
Protection and Transparency
Moving corporate processes onto blockchain infrastructure simplifies and accelerates operations while increasing security through the transparency inherent in the technology.
The model does have limitations, and they are important to understand. It applies only to newly created companies; existing businesses cannot be converted into a digital format. In other words, if a company starts as digital, it cannot later revert to the traditional corporate model.
