Does anyone consider that there are 200+ countries in the world, and 96% of their population is not American, and about 60% of the bitcoins are not? Does it have any practical significance?
It is difficult to imagine the EU not employing a similar scheme, so that's another 30 developed world countries to cross off the list. Hong Kong or Singapore might be safe for a while, but I agree with your basic premise, as it's unworkable in practice anyway. No-one considers the issue where one person accepts BTC after checking it's clean, but then the crime report taints it some time afterwards. Fixed supply currency will be unworkable like this, so all jurisdictions enforcing clean lists will see the cryptocurrency (and it's benefits) disappear.