Bitcoin payments are less anonymous than cash payments. Since every transaction is openly recorded in the blockchain, every Bitcoin can be traced back to its origin wallet address.
Because Bitcoin payments are made using wallet addresses instead of actual names, the anonymity of the participants is protected to some extent. It also makes it easier for black sheep to integrate themselves into the system.
Bypassing the conventional financial system, cryptocurrencies can also be used for money laundering or drug trafficking in the darknet. As a result, the EU Commission is considering a standard regulation of all crypto usage, including investments, holdings, and expenditures.
However, there have been analysis suppliers for years who track wallet addresses and link them to other freely available online data, even those from the darknet. Investigative authorities also use such analysis providers and software tools.