It's true that Bitcoin is a useful tool for criminals, you can see the high share of ransomware attacks demanding Bitcoin as the payment method, which is far superior in this case to any fiat methods. But there's not much a government can do now, banning Bitcoin won't solve anything, Bitcoin is impossible to ban and the criminals would still use it and trade it for fiat on black market. And because of Bitcoin's public nature some criminals will get caught because their transactions got traced on blockchain.
If they can not stop money laundering through fiat currencies, banks, they will less possible stop money laundering through Bitcoin and cryptocurrency.
It's true to say Bitcoin and cryptocurrency can be used and are used for money laundering but say it is like biggest threats for governmental control in their economy, finance on their citizens, I don't think this is correct.
Defending privacy does not always mean it is money laundering and privacy is one of human rights.