I don't see why that's true at all, cryptocurrencies are public ledgers with mostly KYC'd on/off ramps.
Explain how bitcoin has become the go-to tool for ransomware gangs.
Moreover, the intent of cryptocurrency creators and substantial number of cryptocurrency users is to be immune to regulation. You can read the number of posters here who view bitcoin as answer to the power of the Fed. Maybe crypto can be so controlled by regulators that it won't anything, in which case there's no idealistic argument for its existence. Or maybe crypto could make it's users immune to consequences, in which case there are good arguments to follow China's lead and make the system point-blank illegal.