Cryptocurrencies and money laundering

Currency is the value given by the community. Fiat currency is operated by banks and government. Because,

1. Banks have regulations to monitor the flow of the money. KYC n all.
2. The government is responsible for inflation.

Now, where are users like us? Nowhere!

Bitcoin and cryptocurrencies are not responsible for money laundering. But, this term exists since decades. Every system has a loophole. I agree with the fact that there have to be regulations in order to run the society but not the sake of normal people like us.

There are lots of other ways to carry private key other than the options mentioned here!
https://www.congress.gov/bill/115th-congress/senate-bill/1241/text#toc-idea0e9489fc8f46379f95bb56c8bbbda5

And I don't see this is a solution at all.