Bitcoin on the Lightning network is completely untraceable. It is also super easy for users to onboard merchants etc with it.

Since the latest BTC fork it is much harder to do chain analysis. Everyone talked about the efficiency gains but it also made things more private.

You can just move your Bitcoin to a multitude of other addresses via tumblers and even the Lightning Network (in smaller amounts).

Blacklisting only works in relation to Canadian centralised exchanges.