Lol. You think the government only take action against things which are illegal? The government works exclusively for themselves, and will take action against anyone or anything which threatens them, illegal or not. They'll take action against someone who did nothing except write open source code under the guise of tErRoRiSm, but they will ignore fiat banks laundering literally hundreds of billions of dollars for actual terrorist organizations.
That's exactly the part you fail to understand . Banks do that because there's not a public ledger that they're working on . Bitcoin was built exactly to eliminate that kind of operation . So that anyone can audit and make such behaviors extinct . To make even governments accountable based on evidence , not only banks . Guys like you are trying to create a new ( similar to old , but even more complex for audits ) banking system that gives everyone the opportunity to do what big/bad entities were able to do so far . You don't want a better outcome for the whole , but a better outcome for yourself even if that comes against the interests of the whole , because "privacy" . While we should be here discussing how to better protect our privacy - for example ZK proof for KYC/AML - we are wasting time on how bad governments are . If governments are bad let's make something that can make them better , and not us to become worse than them .
Bitcoin can't be compared with banks , it can be compared with cash . Bitcoin is a traceable electronic cash system .
It was built to take away the worst part of traditional cash which is anonymity . You fail to distinguish the differences between anonymity and pseudonymity and why anonymity can lead to bad results as there are no consequences .
Proof (Satoshi quote) or it didn't happen.