Yeah, but the blockchain doesn't exist in a vaccuum.

If 1 BTC = 1 BTC, why does depositing coinjoin coins at an exchange get your account suspended?

Because 1 BTC != 1 BTC. Every satoshi has a history. That allows you to discriminate between them.

For now it's at exchanges. One day it might be any utxo not known to be associated with an identity cannot be legally accepted by a legal merchant (you know, 99.9% of businesses).

Another day it might be you being unable to open a legal lightning channel without prior permission, and if you do you will be fined for money laundering.

If those seem preposterous to you, just know that some of us have been here for long enough where the idiotic clueless majority swore that exchanges would never block anyone's account because BTC is fungible.

No. Your collective stubborn ignorance has created a financial surveillance system far more insidious than anything that existed before. It's amazing to see that same stubborn ignorance 16 years into the experiment.

The AML/KYC nightmare has only expanded because of this. No need for warrants, no need for suspicion, no need for complicated international arrangements, oh no.

They just put it online forever on "the blockchain". And as long as NGU they don't really care.

Actually it's even worse than that, since most don't even use the blockchain, they use an exchange like a bank thus negating any advantage this technology had in the first place.

It's just incredible, the whole shitshow.