Criminals are now realising that Bitcoin is not on their sides, atleast not like the likes of Fiat currency.
It's easier to get bursted doing your crime using Bitcoin as your means of payment, it's only criminals with zero knowledge that will choose Bitcoin as their money for funding their crime.
The power that Bitcoin gives us has never been seen before, if someone told you in 2005 that sooner we will start seeing the worth of our leaders you will say impossible.
Today we can know how much Trump Bitcoin wallet is worth, the more popular you are in this world the easier it is to figure your Bitcoin worth, unless you don't share your address at all, this is the only way your identity remain unknown.
Who dares go to the bank and ask for a governer's bank account balance? But now we can know because BTC is open source and traceable, isn't Fiat the perfect one for crime than Bitcoin? With power you can be dirty with Fiat, but not Bitcoin, you will eventually be bursted.
Making it the wrong place for crime to exists.
Nope this is still friendly for them since they still have lots of ways to take out those stolen funds since there are lots of platforms they can use to exploit things and make everything goes in their favor.
Also no criminals would use regulated platforms since they know that they won't succeed on their crimes especially that most of these platform ask KYC.
But criminals have fewer option since government make sure to regulate everything they know that can possibly block their investigation. Maybe there would be some time that Bitcoin will be not friendly to criminals especially if government knows how to track every transaction they made. Also if they can take down all the mixers which usually help this people to wash their illegal funds.