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Maybe a dumb question, but why don't these sanctioned individuals just use a different address?
Imagine:
  • Alice send coins from address 1aaa to 1bbb
  • Address 1bbb now has some corn.
  • OFCA sanctions address 1bbb
  • When Alice wants to send coins from 1bbb to 1ccc miners refuse to mine this transaction. Alice can choose other address to receive (ex 1ddd), but the origin of the corn will be the same, the sanctioned address.
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Imagine if you could "burn" dirty coins as mining fees and the pool just returned you some fresh coins...
Oh wait, F2Pool already did that with Paxos/PayPal this year
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I like to imagine some kingpin has been reusing the same address since 2013 and hasn't even noticed they're being sanctioned yet.
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