I still don't get it. How is Bitcoin not fungible? And why are the coins tainted. It's just transaction in a ledger. There are no actual coins. Like if someone used a dollar to commit a crime. And then later you have that dollar, it's still spendable, right?
Discussion
Just because it is a public ledger is possible to “follow” the coins. Lately I had a problem in a CEX, luckily they returned the #btc but I heard about cases that they “kidnap” it till you go thru KYC or prove where you got it
In practice, it isn't fungible, and because of it's transparency people are both incorrectly accused of risky and criminal behavior via AML and have their funds seized or rejected all the time. An ongoing and high profile case of this is Roman Sterlingov.
This is the truth but the DoJ, SEC, IMF, etc have the goal to control every dollar in the world. They already do this with digital fiat. They already do it with most assets.
KYC is the enemy.