The problem in this case is the government not the banking technology. Do you really think if there are armed police at your house to intimidate you you are safe because there's a crypto wallet on your phone?

In Europe they both go by the hand. It just doesn’t cringe loud as they usually cooperate peacefully.

I saw another comment of your, about what case you are talking about. I thought hackernews was not overly sensational :(

What's to stop miners, or exchanges, agreeing to blacklist certain wallet addresses?

That it won't work even for fiat? Of course there are some blacklists against certain prominent persons but the vast majority of dirty money goes around unfettered.

Which country?

Used to be Slovenia. Now more Slovenian democratic repulic. Democratic in the name so you know democracy works...

Probably Bulgaria, Romania, or Poland.