I'd like to introduce you to Monero, which isn't globally trackable and also properly fungible so you can't refuse mixed transactions (since all transactions are protected).
Apparently it powered online drug marketplaces before Bitcoin existed.
Try doing that with crypto. Who are you going to arrest?
Every on- and off-ramp provider. EU legislation has basically created a database of real person to wallet mappings (for some subset of wallets). You can't take money from a wallet if you don't know who it belongs to (if you're an exchange anyways). The checks are a bit soft (ie. self attestation and stuff), but the public ledger part of crypto makes tracking far-far easier than with traditional banks.
The end game for this is that people in the West (and whoever they can pressure) won't be able to buy crypto to buy drugs or sell it when selling drugs, making it useless on a big scale.
This is essentially the purpose of localmonero and similar offerings. Trading cash for Monero in a p2p manner is going to be extraordinarily difficult to halt.
I agree with you on targeting the on- and off-ramps. But I think you got your use cases wrong.
Crypto has two major use cases these days:
- speculation (aka gambling)
- ransomware payments
Buying drugs is pretty far down the list. And so are pretty much all purchases of normal goods and services.
With crypto you don't hand over your coins to a third-party for safe keeping, you instead send coins directly to one another, just like with cash.
Hence my restriction to crypto that is 'like bitcoin'. Yes, you can use some tricks like zero knowledge proofs to make untrackable crypto-currencies. But as far as I can tell, they aren't all that popular. For currencies that offer both stealthy and 'regular' transactions (I think like zcash), the vast majority of transactions are of the latter kind.
