So effectively you are saying that if people using an unregulated exchange that is not compliant they will lose money, and therefore the end of Bitcoin? Is that really what I just read?
I'm saying if Service A supports blacklisting, and Service B does not, and User recieves blacklisted coins from Service B, which does not blacklist, and tries to use them at Service A, they will not be able to.
Yes that is the whole reason for this thread.
I think you missed the point of my comment. See MtGox (and many others). People lost money. Bitcoin is still here.