Without complex smart contracts plausible deniability is much harder, because you have to use a centralized entity (like an exchange) to manufacture profits som

Without complex smart contracts plausible deniability is much harder, because you have to use a centralized entity (like an exchange) to manufacture profits somehow, and that's much easier to regulate away. Not to mention more risky - exchanges like to lock coins pending kyc. Note that no purely cryptographic method exists that prevents you from provably deanonymizing your transaction. I'm nearly certain the legal situation is eventually going to deteriorate to a point where if you can't prove the origin of your crypto funds, you can't sell them for external property (ie. not fully decentralized tokens) at all.