Would this result in a lack of fungibility?
How would you prevent label abuse? At what point should you prevent labelling? How many labels would you consider possible or feasible?

Should we label every coin based on who owned the previous transactions as to whether they were a republican/democrat/libertarian/socialist, or whether they believed in christianity/judaism/islam/shintoism/buddhism/etc?

I understand that certain things become collectors items and criminality should be traced, but that seems already inbuilt, so I don't understand the further uses of such a thing.