It shouldn't come as a surprise that authorities won't like to see such advancements in Bitcoin because it took them years to get to the point they are today
Not to mention Chainalysis and similar businesses charging somewhere close to $50k / year for access to their database.
A few limits and common sense policies do reduce the laundering. But the direction this chainalysis thing is going, within a few years we will see many stories of random people's houses being searched and their lives ruined essentially because they didn't buy their coins from a regulated exchange - even small amounts. And that's bad for crypto. Not for criminals, they'll be fine. Just regular crypto users.