Where is it illegal to ensure the privacy your funds?
Well, the laws that exist at least in Europe illegitimize privacy in the use of funds at least from medium amounts. Let's make an analysis.
If you get paid for a job that either shows up directly on a tax return or you are legally obligated to declare it. In other words, the income from your work is not private at all. If you get money for selling a house, for example, neither.
In the European Union, all transactions between member countries that exceed 10,000 euros ($10,400) are automatically reported to the authorities, and those within countries have lower limits, such as 2,500 euros. Those of lesser amounts are obviously registered and available to the authorities if they request the data.
If you go to a country of the European Union, being a legal resident in the country, to open a bank account with "private" money that exceeds 10,000 euros, they will not open it if you cannot prove the origin of the funds.
There are countries like Italy, Spain or Portugal with a cash payment limit of 1,000 euros, which means that if you want to buy a fucking TV worth 1,000 euros you can not pay in banknotes and your name is registered in the transaction.
I would put the question the other way around. Do you think there is much time left legally speaking for services that are dedicated to obscuring the origin of funds? No upper limit at the top? In other words, an Italian buys a 1,000 euro TV in Italy and the transaction is obligatorily KYC. He makes a deposit in his bank of 5,000 euros and gets automatically reported to the authorities who are probably going to ask him to justify the origin of that money, and meanwhile that same Italian can mix 50 Bitcoins "for privacy?"
That leaving aside that I am not very clear on the basis of what legal vacuum mixers operate, because in normal conditions a company that provides services to Italian citizens, should charge VAT and pay it to the government of Italy, which I doubt very much that the mixers do.