You are right, often I'm trapped in my thinking.

and funny that you say that. I deal with living in different countries and different laws quite a bit. It's an interesting thought experiment and a more interesting way to live (rather than complying with things that make no sense.) Was just trying to look at the question in a matter of fact way, but was probably being quite obtuse.

In terms of Bitcoin UTXOs, I see water as a similar thing. It would be like dividing a river in half and saying you can not steal or drink water from one half but you can from the other. Essentially, there is no boundary. Just an arbitrary construct that aims to govern the ungovernable properties of elements.