I've been saying it for a while now: the notion of "taint" is an attack on Bitcoin. Governments can't stop Bitcoin, but they can make people stop trusting it. They want fiat money to be fungible, so people trust it. For Bitcoin, it's the opposite. And by the looks of it, they ones in favour of taint are gaining ground.
It's all an abuse of power from the top of the pyramid and going down. The idea is,
you are going to listen to what we tell you or else! The nation state tells it to individual regulators, and regulators spread the information to their subjects. When it reaches crypto exchanges, most will play ball because their survival is the objective and not the interest of some crypto user out there somewhere. So, when they get told,
this is our new position, deal with it, 8 or 9/10 will accept it as it is with no complaints. Those who don't want to will be dragged through the mud until they understand.