Except there are many places where criminals are looking to extort, kidnap or worse, rich people. And a key to identify rich people, is finding out what their finances are. So yeah its "sounds nice" that you need to explain your gov where your fortune comes from to deter crime, but it isn't great when this info falls in the wrong hands, and in some places, such criminal organizations have ties with the very same gov or entities regulating this.

You see, its a catch22. Suppose the Mixer requires you to KYC to comply with regulations. Then this mixer (or the KYC processor) is "hacked" and the info sold in the "dark web". Then some local crimelord with a cyber arm finds out about you...

But yes, it could make easier to launder too. Those who live in "nice countries" (ie. low crime rate) would seem to willingly surrender their privacy. What could possibly go wrong? But many living "less nice" places, where crime and police are often one and the same, their privacy means their life, quite literally.

What is the crime in becoming rich by honest means? Its not a crime, but criminals would love to find you... And then they will launder what they take from you. Or maybe lets forget KYC and educate people to not do foolish things like holding a large sum in an online wallet, reusing addresses, and leaving traces that could make third parties correlate address with person.

Well i guess you could also diversify and invest in other things. Laundering is nothing new, and has been always done with fiat. Bitcoin is not at fault, and things like KYC are an external artifact from an outdated system/society.