this is global. mining pools would start by filtering AML flags out of blocks.
they keep hunting down mining companies that and even get rewarded when they comply. they manage to take over 51% hashrste and since then, drop blocks that include invalid transactions. the rest of the miners either fork or start complying to prevent there blocks to be orphaned and become part of the problem.
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If a pool started doing something like that hash would move en mass to other pools. Trivial to move hash. I donβt buy it.
Game theory dictates that there are always other players in the same industries (government, hash pools, etc) that are willing to offer more favorable conditions or terms to attract talent / capital from larger players who are taking advantage of their monopoly.