it looks like bitcoin and other cryptocurrency can be a money laundering tool because in some countries the rules for using cryptocurrency are not too clear and when assets are sent to cryptocurrency wallets, there can be money laundering.
I think this is not the reason why those countries have still not recognized fiat. I believe that it is not easy to do o in the type of government where there is fare and just accountability like China and there is literally no concept of making money by entering the government. So regardless of how much personal space Bitcoin offers, it is not possible in the presence of an audit system having great history for the accountability.