The problem, as you alluded to, is that we can evade all kinds of laws with software and technology, but in the end we live in a society that has rules, like not to launder money.
This wasn't my point. My point was that if an entity perpetually brainwashes everyone and tries to create a bad picture of bitcoin for their own benefit, you shouldn't bow your head and admit you're doing things wrong. For example, if few politicians state that bitcoin wastes too much energy and advice against its usage, don't try to change the code; the problem isn't into the code. We've spent hours on this debate, and we've
debunked it.
Same goes for KYC. There's no study that reveals less criminal activity due to this undoubtedly extravagant requirements of personal info. Pretty much the opposite, it's
extremely dangerous; it encourages identity theft, scams and helps scammers stay undetected. The reason the governments want it, and exchanges often intentionally add it, is control. It makes mass surveillance work more easily and effectively, it's moneymaking from the CEX's perspective, it's advantageous for chain analysis which brings even more money etc., all these entities cooperate for control.
So, when a CEX imposes KYC or some other arbitrary rule, such as "tainted coins", don't try to figure out a technical solution, such as improving privacy on a protocol level with cryptography.