Yes thats true. Cryptocurrency can be used for money laundering. In fact four primary areas of criminal activity lend themselves to cryptocurrency: tax evasion, money laundering, contraband transactions, and extortion. This is the reason why many countries are against cryptocurrencies. But I think thats the fault of people and not Bitcoin that they are using this wonderful technology for such illegal motives
Although the error is on the user, but the government certainly can not blame them because they are anonymous, of course the target target error is bitcoin, that's why they forbid bitcoin. you're right bitcoin can be used for that, and now there seems to be no way out for this problem..