As far as criminal activities are concerned countries percieve the impact of crypto to be rather significant. So even if 1% of crypto transactions are related to criminal activities, but 40% of all relevant criminal activities are handled in crypto, it is still a problem.
Even then — even if bitcoin and cryptocurrencies didn't exist then they'd continue on conducting crime schemes but in fiat instead. If anything, they should actually prefer the tracable nature of most cryptocurrencies, because a lot of ignorant crime-doers ignorantly send funds to their KYC accounts.