this isn't a "problem" but an opportunity for the crypto lobbyists to show how useful their product can be to the State, not just the individuals who run it.
As usual, crypto is not the majority source. Terrorism is not enabled by crypto. Its enabled by obfuscation, which the traditional system is rampant with.
Crypto based monetary systems at least have the potential to start de-obfucasted economic rails. I won't advocate for any specific project, but a brief search around "crypto KYC" or "zero knowledge KYC" might yield interesting results for readers.