That introduces more friction into the process, but incentives will always find a way. We haven't been able to stop a billion dollar drug trade, what makes you think banning a trillion dollar crypto market will cause it to disappear entirely? It might have a huge collapse in value and finally drive away all the dumb money pouring in, but it will still be there.
They won't have to. It's like putting absurd security on your door yet leaving the windows as open as always.
If you ever want to move value out of your virtual economy and into the real, they can and will be there waiting for you, with all their unreasonable demands.