This is a dingy street that runs off Diagon Alley and is home to an altogether less salubrious class of wizarding shops. There are a number of others, selling shrunken heads, giant spiders, poisonous candles, and a vast array of other Dark Arts materials. The fact that items like these are openly on sale in a place accessible by any wizard is a plain indication that ownership and trading of such things is legal. It’s unclear, however, where the law stands on use of the items in question