alt Hacker NewsAh money laundering, the government's 2nd favorite excuse to bypass due process, remove freedom, and impose arbitrary punishments, after "emergency" and before "think of the children".
The government can prosecute money laundering and all the other crimes, but it's not an excuse to impose extrajudicial punishment. Until they stop, having some cash and crypto is your only means of defense.
I understand your threat model is centered around the risk of a government persecuting you. This will naturally conflict with incentives of people whose threat model centers around a lower severity but higher frequency event of systematic violence performed by criminal enterprises, with a necessary condition being ease of moving money. Both representative and totalitarian governments seek to aid investigation of criminal activity by following the movement of money.
I'm unsure about your reference to extrajudicial punishment, is it referring to de-banking associated with AML and KYC regimes in the US? If so, I agree that unjust things are unjust. I believe we should seek to fix those injustices directly through lobbying lawmakers, rather than rejecting an entire system that has significant security benefits.
I am sympathetic to people who have a fatalistic attitude when it comes to political reforms. Having other financial instruments as a backup is a good practice.