LOL you’re seriously doing this? Should I give you my IBAN as a proof banks solve fiat privacy?

It’s not about me linking outputs to inputs. I’m a criminal. Your blockchain analysis partner tells you to deny participation of my UTXOs in the next CoinJoin. By default, you’re only allowing those you trust. This shrinks the list of possible identities behind UTXOs to as many as you like.

Explain how in your world list-shrinking censorship solves privacy.