Compliance and privacy are incompatible.

Governments will continually undermine any coin or system (through legal and covert means) that provides any real privacy because it empowers individuals and chips away at their control.

Look at Samourai Whirlpool, Wasabi, Tornado Cash, Roman Sterlingov, Monero, etc...the list goes on

"Ethical concerns must also be considered to avoid facilitating illegal activities"

The ethical concerns of governments and criminals weaponizing transparency must also be considered

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The funniest part I would like to note that so far our VPS business haven't received a single abuse complaint regarding customer paying in Monero, but we git a few priblematic customers paying fiat (hosting child porn, hosting phishing, trying carding etc.)

Tornado survived... Everything was dropped.

Yes, Tornado luckily survived because the smart contract is decentralized. It was never under threat. The creators were. The whole point is not to rely on political whims to secure these things otherwise there is no point/advantage over traditional systems.

Everything else besides Tornado Cash and Monero was centralized. Since they know they can't control them they pressure exchanges to delist them, go after the creators, and place them under OFAC sanctions. It's obvious that governments would force them to comply or shutdown if they could.

Be an anonymous devs or RIP.

So would it be easier to have a group make an exchange that magically disappears and reappears in a new form every so often?

You can't prosecute what you can't catch?

Proliferation of anon devs, similar to Bitcoin and Monero community, is the way to go for disruptive and adversarial tech. Satoshi understood what we were up against that's why he was anonymous and dipped out.

But I thought Satoshi was Dorsey

It'd make sense to watch over your creation silently in the background laughing at people trying to figure it out and denouncing the fakes with the plebs in the public square

..... For all intents and purposes.... We must remain compliant in the eyes of the oppressors.