For example, I steal 10,000 USD from a bank, I then buy bitcoins with all
the money on localbitcoins or with other p2p cash trades. Eventually, I will
have around 10,000 USD converted into bitcoins. I then use those bitcoins to buy
other altcoins to mix them more, possibly monero, and then reconvert back into
bitcoins, where I now sell those bitcoins on localbitcoins or other p2p cash trades.
When I receive new money that is not associated with the original 10,000 USD,
I have "laundered" that money.
Besides committing the original crime, laundering would be an additional crime.
Actually, there's no laundering in your scheme. It's dirty money at the beginning, and it's still dirty at the end. Mixing is useless.
To launder the money, it would require to make it pass through some kind of legitimate business.
Imagine you create a carpet cleaning company, or that you are a mechanic making oil changes. Your income for a given month is $1,000 but you add the $10,000 in
BTC, and you fill tax forms telling your income was $11,000. This is money laundering, because the money now looks like normal income from a registered company.