KYC is the main issue, not traceability itself. Even if you manage to execute a perfect CoinJoin and break the on-chain link, when you try to convert back to fiat or use a regulated service, the Travel Rule requires you to prove the origin of the funds. MiCA + Travel Rule + the power to 'remove' you even when you temporarily achieve privacy.

That's why you need good out-of-the-box, cheap & usable onchain privacy. That's what enables us to just ignore those tyrants and transact freely, as Satoshi envisioned. #Bitcoin gives them the power to regulate us, #Monero helps and protects the ones living under this socialist/totalitarian regime.