zkSNACKs Ltd. as of 2021 was registered in Gibraltar and was operating in compliant way with all regulations and was able to operate and take income and pay wages to employees.
The problems started happening when people started asking questions.
The problem is the centralization where there is a company that is trying to make money from a software (Wasabi wallet) they've created. If the things get worse with crackdowns the same thing could happen to other centralized companies that have created "regular" wallets like Coinomi. In other words it is not even a privacy-wallet related issue.
The governments will put pressure on these companies (as the centralized point of failure) and demand they comply with whatever they say. They won't stop there either, they will put pressure on any known entity they can get their hands on. I personally believe that the reasons why some core devs have acted strangely is this, like the recent case where one of them advised bitcoin LN nodes start censoring transactions from certain countries!
That's why Wasabi decided to take the trade-off of blocking transactions from "nefarious sources" that's "according to" blockchain analysis companies. Wasabi believes that it gives them a layer of security. But does it truly give them a layer of security? It's currently working, but we can't be sure for how long.