The point I'm trying to make is that there's loads of dirty money in crypto (I think that's fair given all the ransomware). Banks/financial institutions who support crypto off-ramp are gonna be hard pressed to determine how much of the crypto assets they see are legitimate vs criminal.

So, the likely outcome of lots of crypto/stablecoin providers with fiat off-ramps is that it provides a way for this dirty money to get laundered into clean fiat/assets. This is gonna be a real headache for these providers, and I really can't see how they ever do due diligence/AML/KYC on all of this money.

That being said, dirty money has always and will always exist (barring some totalitarian global state) so this isn't a new problem, just one that I think will be concerning for financial institutions and regulators.