Quote from: malevolent on September 11, 2019, 11:09:34 PM

That would be ideal, yes, but if things like the travel rule become entrenched and enforced in the ecosystem, decentralized alternatives will never grow if people can't feasibly use their bitcoins, either because they can't spend them outside of DNMs or because they can't sell them, or because can't sell them for as much as they trade on most exchanges.

There is another issue related, as FATF is aiming in making the crypto environment as close to the banking system as possible.
We can check the history of each wallet or block number. Imagine you became an owner of the part of the block which had been related at some point in some sort of illegal activity. In the eyes of some officials, it would make you somehow involved in an investigation related to the money laundering and your wallet can be frozen (depending on the local legislation) for months if not years. Not to mention that in some jurisdictions it can be even enough for arresting you. Even if you just eg. accepted payment in BTC for your used mobile.