Wow, this sucks. It confirms previous fears of mine that if they can not censor Bitcoin directly, they will try to do it by strictly censoring exchanges, ATM's, wallets et cetera. If and when Bitcoin gets a fully working user friendly and fully decentralized Atomic Swap mechanism with Monero, this problem will be gone as it allows you get to privacy immediately without having to rely on trust or censored coordinators. That is unless GitHub gets censored too..
Anyway, what options do users, who want their transactions coinjoined with Wasabi Wallet, actually have?
1) Should they use other mixing solutions like centralized mixers before sending their funds to Wasabi?Wallet?
2) Should they create a sufficient number of hops artificially before sending funds to Wasabi?Wallet?
3) Should they start looking for, or building their own, custom, more decentralized, coordinators?
4) Maybe they should switch for other CoinJoin implementations like Whirlpool or Joinmarket and forget about using Wasabi Wallet?
1. If 'illegal' UTXOs are banned, then we can safely assume coins coming out of mixers will be banned as well.
2. This seems to be the best option. I highly doubt an 'illegal' UTXO that has been through 20-30 hops would still be banned. That is, unless they decide to ban a UTXO and include any future address they may end up at into the ban. This is however unrealistic, the number of non banned UTXOs will very quickly shrink to zero.
3, 4. Maybe Joinmarket, although if this is a precedent then expect Whirlpool and Joinmarket to join the censorship.
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Regards,
PrivacyG