Any bitcoin business that went along with say adding code that obfuscated transactions to a point that there is unlinkability and untraceability would have problems with regulators assuming they were AML/KYC compliant etc or whatever the regulation is.
There lies the issue with your logic.
In the world we are heading for these type of things don't exist. This is what I mean when I propose you are too mindfucked on fiat to see straight.
At the chance you have cared to read and didn't quite grok this part this is what Mircea means here:
First off, I do understand why you would think there is. Honestly. You're used to a certain system, you grew up in a certain system, you expect the trappings of that system anywhere you go.
Ever gone camping, fishing, hiking, and turned your eyes looking for the faucet or power outlet or wifi modem lights or whatever ? Sure, rationally you know and understand that you're in the bellybutton of fucking nowhere, and there never was and never existed such a thing as you're looking for within a hundred miles. Nevertheless, at some level, your brain expects that faucet. What do you mean nobody has ever laid a hundred miles of pipe/cable/bacon trails all the way to right over here ?! Impossibru!
http://trilema.com/2014/guidance-there-is-no-such-thing-as-bitcoin-taint/#selection-39.0-45.507Just because I used that example does not mean it doesn't exist to have legal implications elsewhere.
let's say it is outlawed to deal in blacklisted addresses determined by your local government...yes you can move but to a certain degree what if that happens in that other country?
It doesn't only apply to AML/KYC institutions...it can apply to individuals.
Think of it as filing your taxes in the US and not reporting your income. There can be instituted laws that would apply to dealing with addresses that have been black listed.
It's stupid I agree...but since when are our governments really smart and efficient and for the people?
We live in a fucked up world yes =)