How can a system be made decentralized, but able to self-police against legitimately, publicly agreed upon bad behavior? If the system is able agree upon and exclude legitimately bad behavior automatically, the governments would not have a claim upon needing to police it and regular users would probably find it beneficial as well.
How could the self policing possibly happen?
Maybe you have a blockchain of anonymized encrypted messages that is read by open source scanning bots - if enough independent bots flag a message, then a group of anonymous judges can adjudicate to ban those user accounts?
Encryption is one challenge, but if you want true ubiquitous privacy, you need to deliver internal safety to prevent the need for external policing of activity. Social creatures of any species from dolphins to macaques have evolved some kind of internal behavior policing mechanism or trust is lost, and as such the system of value exchange grinds to a halt.