what does AML compliance on exchanges have anything to do with bitcoin

Its not only to exchanges, didnt you read the document? Markets will aslo need to have implemented measured to see if your bitcoin is tanted or not, and this is just the beggining Where will you spend your self custody bitcoin? In dark web?

This will just increase grey/black market flows, p2p txs are to be between like-minded plebs that will not differentiate coins based on where they have been, no?