These technologies need to be regulated such that the transfer in and out from VASPs requires beneficiary information or originator information to be accessible to the VASP. If this information cannot be analyzed for deeper inspection as to the true origin (in the case when an intermediate address is used to hide the true origin of the funds), then the funds should be frozen.
They want far too much.
In the same way one is allowed to deposit or withdraw fiat to/from the bank (you know, that paper stuff nobody knows where you have it from or what are you planning to do with it), privacy coins should be allowed.
Of course, for bigger amounts (I don't know what are the banking limits), questions have to be asked/answered, in the same way as for fiat.
Of course, the businesses doing this will have to ask thorough KYC details from their customers.
But that's all. Going beyond this is against the right for property and it's discriminatory too.