The first sentence isn't true. That's kind of the whole point. Bitcoin can be spent without permission. The mechanism you are talking about is a social mechanism that can be applied to anything. Yes, even monero. If Monero had an exchange your coins could be frozen there too. If you KYCd your monero, everytime you spent that amount somewhere and your name was involved you would get flagged. The problem is not the protocol it is the idea that people are using a social debt network (money) while being a social pariah. You can use bitcoin privately, or not. You must use monero privately. That in and of itself is something we have never seen as a species. Fungibility though IS not inherent to the protocol that is a network/social layer ontop of the mechanism of money.