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They can't ban Liquid but the exchangers can refuse to exchange Liquid USDT for EUR in the same way as they refuse tainted USDT on TRON without actually blocking the funds in the smart contract.
Furthermore, confidential transactions don't hide the input and output addresses. So an exchanger would see this: (10000 RUB changed for USDT) -> ??? -> (this guy wants 100 EUR from me) and connect the dots easily.
OTC P2P markets is another thing that needs to develop more here.
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