Except the same applies to translating almost any currency into any other. The Eurozone is fairly unique in the world in terms of lax currency exchange within itself - go try converting Yen or Rubles into GBP and see if you don't have to file anything.

Bitcoin absolutely is valuable. Some people even take it as payment, making it a currency. And moving around that currency is way more transparent and unencumbered than moving any form of fiat. Currency exchange is wholly up to what you want to convert it into and what exchange you are working with. And if that ends up involving your government... people in other parts of the world don't have that limitation. You can't blame the tech if your society chooses to inhibit it (as your PM is trying to do right now...).

You are not talking about sending money, but converting money from one type into another, namely fiat money (which is exactly why all the KYC regulation is required). Try converting one crypto currency into another using shapeshift and see how extensive that KYC process is.