BTC is supposed to be free and borderless, but with this kind of tracing it feels like they decide which coins are “clean” and which are not.
So, using unregulated exchanges just adds to the risk since they don’t screen coins properly, so you might end up holding tainted btc without even knowing.
so what do you think, just more fud to push people into regulated exchanges, or this is a real problem we need to worry about?
Most times I see this as war on decentralization and privacy. These"duty coins" theorem tries to challenge Bitcoin core promise of fungibility which charity states that 1BTC = 1BTC irrespective of it's history.
Most people using DEX might be victims as you can swap coins not knowing it's tainted and when it arrives on the CEX it gets blocked and the account frozen. This would only create fear in people and make them tilt towards the use of licensed exchanges for their activities thereby encouraging centralization the more.
I think using conjoin services can be of help in this case as it would alter the direct history of tainting to a large extent, maybe you can send some coins to a new address with the service to spend them without trace of being tainted unless they decide to freeze coins that used Coinjoin services too.