FATF and the government were desperate to eliminate/immobilize bearer bonds, bearer shares, high denomination notes, and hawala. It does seem like at least part of it is they think they have less control over oversight of their transfer for certain instrument or asset classes.

Bitcoin is not like high denomination notes or bearer bonds, though. Transactions are on the public blockchain.

In theory someone could have coins untraceable to them as long as they never intersect with something on chain that could be traced back to them, but that turns into a game of never spending the tokens when taken to the extreme. Bitcoiners quietly see that as a feature, not a bug, because the goal of the game is to get everyone to buy as much as possible but sell as little as possible. That’s the formula to make the number go up.