Bitcoin is just a tool which can be used for different causes. Therefore, it cannot encourage people for doing anything. People launder money because they don't want to pay coerced taxes, war in drugs doesn't work. So are these things really crimes?
Among the use of crypto is just what it is in the mind of a criminal wants to use it the way they want it, it can be done. Same thing with fiat. Fiat are owned by government and yet they still can't control the use of it. Which is why I'm not sure whether the regulations are suppose to be imposed. Let the crypto space be what it is right now. Its not like they can control someone anonymous enough from creating another coin.