No nations can enforce their laws on Bitcoin as a financial rail, but that doesn't mean an entity holding Bitcoin won't follow laws made about how to use those financial rails. Yes, morality, ethics, and laws change with individuals and cultures.

What are you proposing? That everyone discard their morals in favor of yours? That we shouldn't see the taking of coins from ByBit as a theft? That we should force everyone to do indiscriminate business with others without considering the details of their identity?

If I want to reject business from someone who seemingly has a private key related to a utxo with stolen coins, that is my prerogative as someone who engages in business.