If a bank robber wanted to swap blacklisted $100 bills with you, would you? Would you just swap them at their face value, or at a discount knowing that it gives you a non-zero risk of having negative legal consequences?
Mixers will have to change their policies in order to avoid becoming a market for lemons in which everyone loses.
I do not expect governments to worry a tiniest bit about destroying value of an anti-government technology.
mixers are currently a market for lemons. No one uses a mixer on clean crypto. Hasn't been a problem, but I guess the government could start banning exchanges from accepting crypto that has ever been used at a mixer, although eventually won't it all pass through one?
> Just blacklist any coin downstream of a blacklisted coin.
What does this mean? If a single blacklisted coin is put in a mixer then every other coin mixed together is blacklisted? You've just banned mixers. Eventually every single coin will be able to be traced back to a blacklisted wallet, so you've also just effectively banned crypto in the long run.
> No legal entity would be able to hold or trade blacklisted coins.
Mixers don't have to be entities though. No one owns them, no one is responsible for them. They're just code someone uploaded one day and promptly forgot about.
Mixers will have to change their policies in order to avoid becoming a market for lemons in which everyone loses.
I do not expect governments to worry a tiniest bit about destroying value of an anti-government technology.