Sure. I'm not saying that money laundering from bank accounts, which will presumably be tracked from the "withdrawal" end, doesn't happen. I'm simply saying that money laundering of cash that is not in bank accounts also happens, which would need to be tracked at the "spending" end. The fact is that this tracking at the "spending" end generally doesn't happen, except for some very large purchases. I've personally made purchases of several thousand dollars in cash without even a hint of KYC being required, so you are going to struggle to convince me that KYCing for a $10 pizza bought with bitcoin is to help prevent money laundering, or indeed that any significant amount of money laundering occurs via this route. This is about surveillance and control from governments that are scared of losing their grip and scared of new technology.