Gobal regulators have been pointing to cryptocurrencies as a mode of money laundering and tax evasion.

The release of the Pandora papers has exposed the wrong doings of the bosses in the legacy systems.  Regulators find it easy to prevent an innovative technology from gaining mass adoption in the name of regulation, as opposed to questioning the wrong doings of the bosses in legacy system.

Cryptocurrencies are here to stay.  They are inevitable as they contribute in a great deal to the growth and adoption of the blockchain.

Trust Vs. Trustless:  There has forever been an intuitive belief that people in power in centralized institutions should not be trusted.

The sense of distrust makes sense now with the release of the Pandora Papers.  The reasoning behind the core distrust has been substantiated.  It has been established now with the release of the Pandora papers, where almost 12 million leaked documents from law firms and from across the world have unmasked the details of unknown owners of 29,000 offshore companies, where billions of dollars have been hidden in assets away from taxation and oversight.

The owners consisted of a list of political leaders, celebrities and underworld figures from across 200 nations. A majority of them were reportedly from Russia, the U.K., Argentina and China.  Aggressive tax avoidance practices of top personalities have been unfolded.  They have managed to do this by engaging in extremely complex corporate legal entities. In several cases the funds were related to outright corruption.  Majority of the activities of these companies are nominally legal.

Missing tax revenues means missing public infrastructure and services from across the world. All of these at the expense of the poorest and vulnerable people.

Top global leaders and industrialists have accomplished their tax evasion acts through off shore companies. They were able to do this with the help of shady banks.  This is not possible by average people who use cryptocurrencies.

The Average Joe cannot do with cryptocurrency what the Pandora papers bosses do.  Bitcoin and Altcoins profess anonymity, which in reality is “pseudo anonymity.” With some technological crack down, it is possible to identify the triangle of ownership of cryptocurrencies. Even the privacy coins are imperfect.  The reality is that cryptocurrencies will not be able to match the secrecy facilitated by offshore entities.

Cross border asset concealment is something that is possible by those who can afford anonymous banking.  Pandora papers reveal the complex and shadowy nature of the transactions which would not have been possible without institutional power and generational wealth.  Cryptocurrencies would never be able to accomplish what the power guys are capable of.  Technology is in reality sober in this regard.