When regulation kicks in (and it will — no government wants its citizens to be fleeced by rogue nations like DPRK and Russia), are there really any legitimate use-cases?
Even if your sending end is regulated, at the other end, there has to be a regulated bank. If not, the person who is receiving the "money" could be breaking their country's laws. Cryptocurrencies don't magically change that. Otherwise, PayPal or Venmo could allow accounts to be created for those people in US dollars and do the job even more inexpensively.
Are you referring to some specific regulation here?
Country A: person uses government regulated exchange/on-ramp to acquire crypto or mines it.
Country B: person receives crypto and trades it for local currency using a government regulated exchange
Which specific laws or regulations are being broken from which specific countries?
It doesn't work to tell the government that it isn't currency, they will just patiently explain to you that they decide that.
Did you really think that getting around money laundering laws is as easy as converting to nonmonetary assets before transfer?