why should they do this just for Bitcoin ATMs but not enforce it in any other business / store / you name it?
I don't know. I just noticed that banknotes are processed very slowly by some Bitcoin ATMs, that's a lot faster in a typical bank ATM, where you can put a lot of cash, and everything is counted very quickly, like 10 banknotes per second. I wonder if that delay is "by design", if they check them more carefully, or are they trying to trace them by reading serial numbers? I don't know, I can only guess, but 10 times slower counting is suspicious. The currency is the same, all banknotes has the same shape, so I wonder why banks can count them faster. I wonder if banks have better hardware, or if Bitcoin ATMs use more advanced tracking, just to comply with some local law of preventing money laundry.
Oh I highly doubt that Bitcoin ATMs check for serial numbers on bank notes. Pretty sure that if they're slower, it's just since they use different hardware (probably lower quality). But I'm sure there are different brands, different models and what I saw so far, was just as fast as a normal bank ATM.
If they were to reject certain serial numbers, we would also definitely have heard about it on the internet.
See monero. It's, supposedly, more private than bitcoin. What has happened? Most CEX's have blacklisted it, less and less merchants dare to accept it, people beyond the crypto space are constantly brainwashed etc. Is the problem in the code?
The problem, as you alluded to, is that we can evade all kinds of laws with software and technology, but in the end we live in a society that has rules, like not to launder money. Sure, technology can be written and improved to make it more easy to launder money, but it doesn't make it legal.
So if you own billions in XMR and one day you suddenly want to buy a private jet with it, it will be
very very hard to do. And there's no technological solution to this issue to be fully honest.
When Bitcoin attracts the attention of the authorities, you either comply with the law or you follow some of the examples here that do it illegally. Bitcoin gives you a choice, that's the good thing about it, but it's up to the person whether they want to break the law. I think in the real world we don't have to worry about that. KYC will be necessary and P2P exchanges will probably be closed to monitor who and why people are buying bitcoin, but I don't think what you are proposing will happen in the real world
You can't close or monitor a P2P exchange running over Tor without centralized servers (like Bisq), though. That's like saying 'they will ban people from P2P selling their old phones on the street'. It's not possible.
Why do you think KYC will be necessary? Necessary for what?
As said in another post, most (or all?) fiat has traces of drugs.
Yes, I think I read that in some countries this was used as evidence to put someone in jail. They didn't find drugs, but they tested the cash they were carrying, which I think was a large amount for someone to be carrying, and found traces of drugs on a lot of it. This was confirmed in court and they were put in jail. I can't find the link, but I'm sure I've read about it. I think OP has a similar point, we all use fiat, but will that be used against us in the future? Maybe, but I think most people will be fine with it and there will be examples like this where it was used against certain people. Only those that they have suspicions of but have not found solid evidence on.
This sounds odd. The point made by me and others was that all cash has traces of drugs, so nobody cares about it. You're trying to say that they convicted someone for having a dollar bill with traces of drugs, but then they could arrest everyone. That's exactly the point; since all fiat has drug traces, you don't normally get punished for paying with such bills. Therefore, when paying with some 'tainted' Bitcoin (used for illegal purpose in the past), it should also be accepted without issues as well.
