Obviously Bitcoin was a big impact on the internet and has helped lots of people.
But, it has also been used, still being used, for all sorts of criminal activity, providing a payment and wealth storage solution to armed conflicts, organized crime, narcotic trades etc..
What would be your take on curbing this issue?
This entire subject is moot and pointless.
Bitcoin is way more traceable than normal paper money. Cash aka fiat is the ultimate way to keep your illegal activities hidden from public sight. On the other hand, Bitcoin is based on a public ledger that anyone can take a look at. The transactions of Bitcoin can be followed to their origin, and if that origin has a exchange account with KYC or even his real IP, then the government can easily find the person behind those illegal transactions.
If the government wanted to curb criminal activity, they would implement Bitcoin in the place of fiat.