Cryptomontages can make some old regulations obsolete, according to cryptanalyst and computer security expert Pavol Luptak.
According to Luptak, „Cryptomonies or crypto markets can weaken government laws and regulations that are obsolete for the digital 21st century.
„I can say that Space Age technology will help us escape the dominance of the Bronze Age. Despite the fact that the rulers will not like it.“
„Although we spend a significant part of our lives in a virtual online world without borders, we are still trying to enforce territorial laws valid for the physical world. I don’t think it makes sense from a long-term perspective,“ he said.
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The end of taxes
Luptak also explained that today anyone can create an anonymous offshore firm in any jurisdiction and use anonymous cryptography in place of bank accounts, so traditional banking regulations no longer apply.
Because of this, he believes that „crypto currencies will provide a new haven“ and „we can expect massive tax optimizations“ as a result of the new tax competition. In fact, he believes that taxation itself is in danger:
„When many people or companies start using genuinely anonymous crypto currencies, tax enforcement will also be a challenge, perhaps even impossible.“
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Governments are unable to regulate decentralized companies
Luptak pointed out that when decentralized versions of services such as Uber or Airbnb are used with anonymous transactions in crypts, it may be impossible to apply the same rules as those applied to their centralized counterparts.
In general, he expects that in the future a universal shared economy mobile application will also emerge that will allow for the circumvention of government control or taxation. Such solutions could not be eliminated by the authorities:
„It may be a totally decentralized solution that is impossible to eliminate by the government with the use of anonymous crypto-currencies, decentralized applications or even supported by decentralized legal entities.
Because of such censorship-resistant services, Luptak believes that states may lose their monopoly on business licenses.
He even claims that decentralized dispute Crypto Trader resolution solutions are capable of replacing a significant portion of the functions traditionally performed by governments. Data management laws, such as the right of forgetfulness guaranteed by the European Union’s General Data Protection Regulation, cannot be applied to blockchain technology.
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As the ability of governments to spy on and censor communications is reduced, Luptak also expects services such as „victimless crime insurance“ or „anonymous, decentralized reporting of publicly funded crime“ to emerge, with far-reaching consequences:
„These technologies] can mean a total disintegration of all secret government agencies and official ‚classified‘ agencies.
Decentralization is likely to be both good and bad
Luptak admits that he does not know whether such extreme decentralization will result in positive or negative change, and says it will probably be a combination of the two. However, he is convinced that, as with most technologies, the consequences of decentralization will depend on the needs of those who use the new tools:
„I believe that the future will reflect our needs met by the technology of the future. They can, of course, be perverse, creating new threats. But this happens all the time during any technological evolution.