Sure they do: Take your business elsewhere.
Yeah, I mean after you've made an account and deposited money. You can't say "Hey, I changed my mind, give my 'tainted' coins back". They confiscate your property and you either give it up, or give them what they want, that is personal data. They're blackmailing you straight. If they didn't, you could have the option to provide your UTXO on some /taint_check, and see yourself if your money is "tainted", without handing it over to some third party.