My assumption is just that once on/off ramps aren't necessary(when bitcoin/crypto gets actual heavy adoption in terms of day-to-day payments/transactions), laundering will rise/skyrocket simply due to the fact that they wouldn't need to touch KYC'd platforms.
That's a fair point. My counter would be that people aren't laundering billions of dollars to then spend a few hundred bucks on day to day transactions like buying groceries or paying for gas. If you want to spend that kind of money, then you are looking at buying mansions, yachts, that kind of thing. I'm not exactly
au fait with that kind of thing, but I imagine KYC and AML are fairly heavily involved.
Would be ironic if they just labeled user-privacy enhancing in the "stolen funds" category.
I mean, as I pointed out above they are already labeling any bitcoin touched by a company which the US government has sanctioned as "illicit". So the vast majority of bitcoin bought by Russian citizens via Russian exchanges is now "illicit", through absolutely zero fault of their own.
Imagine all your money suddenly being declared illegal and unspendable, by either your own government or even someone else's government on the other side of the world. Bitcoin fixes this, if you just avoid centralized
scams exchanges.