Bitcoin and other cryptocurrencies undoubtedly offer new opportunities for financial transactions. However, they can also be used for purposes of financial crime, such as fraud and money laundering. The absence of central control and the pseudonymous nature of transactions make cryptocurrencies appealing for illicit activities.
What do you think can be done to mitigate the risk of cryptocurrencies being used for criminal purposes? What measures should be taken?

Your concern are real and Digital currency like BTC definitely has been used for money laundering but it does not mean governments has to restrict it. Because money laundering has been done before with fiat currency too. Why they do not ban fiat?
The thing is, transactions are so transparent on block chain and once a wallet is attached or tagged as hacker's or scammer's or frauder's wallet. Anyone could track those wallets activity and authorities could track them back by finding loopholes in the system or by their up address. So that's why it has become hard for the money launderers to launder money using crypto and they are just diverging the interest towards crypto. Because I have also done a little research of all the black money collected in previous years.
That money and hacks are mostly related to north Korea. And we all know that how outside world is disconnected to them and they are to outside world. But we also do know the danger of atomic power they want to acquire and they have the facility to make 40+ bombs but still they are not able to make one. Why? One of the reason is lack of money to buy required facilities. And they are not able to gain money by trading or doing any other activity because they are cut off from the outside world so all they are doing is made some hacking groups who hack different def and other crypto-related projects and that black money goes straight into some account which are being tracked now.
And it has become difficult for them to move the money which is being tracked that's why that money is just lies there in different wallets from many years. That's why I said it become hard for money lay refers to launder money using BTC or any other crypto currency.