Government will never stop until they wont have full control of cryptocurrency.
I support them to keep going hard against crypto currencies. Not because of criminals and whatnot, but purely because of how it stimulates people to ditch centralized services and strictly use crypto as peer to peer medium of exchange. China has been a perfect example of how their anti crypto sanctions fueled the decentralized economies there. Try to stop these people. It's next to impossible.
These criminals are slowly walking away from the "safe heaven" they considered, as not too soon they will all be compromised.
No need to exaggerate. Criminals are creative enough to figure out an alternative route and thus always be a couple of steps ahead of the rest. Just like how regular people are slowly taking distance from centralized services, so have criminals too, but then in a more serious form. As long as none of their coins gets converted to fiat, there is pretty much no risk to it, and this to some extent also applies to XMR.