There will be new miners. China mines, Russia mines, Iran mines. Miners can migrate. In worst situation the network can fork..Decentralization of Bitcoin allows for this crazy game theory where no side will be willing to destroy it.
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Found it:
Well, I guess anyone involved in such dealings will be labeled "unlicensed money transmitters"
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Is this not essentially the same thing?
It has happened before and could happen again.
"Marathon Digital Holdings’ (MARA) new mining pool has mined a bitcoin block that is “fully compliant with U.S. regulations,” meaning the company has started excluding transactions from entities it believes are sanctioned by the U.S. Department of Treasury or have been involved in dark web activity.
The Marathon OFAC pool...“refrains from processing transactions from those listed on the U.S. Department of Treasury’s Specially Designated Nationals and Blocked Persons List (SDN)” to stay “compliant with U.S. regulatory standards,” according to the company.
...
“By excluding transactions between nefarious actors, we can provide investors and regulators with the peace of mind that the bitcoin we produce is ‘clean’, ethical and compliant with regulatory standards,” Marathon said in a statement.
"
https://www.coindesk.com/tech/2021/05/07/marathon-miners-have-started-censoring-bitcoin-transactions-heres-what-that-means/
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