As a matter of fact, the police return fewer stolen USD to rightful owners than the "financial system" (ie regulated banks, credit card companies, etc). If you report an identity theft (a theft of your USD via your CC or bank info) to the police, nothing will happen, even if they find the guy. The party that is going to return your money (if anyone) is your CC or your bank.
The "financial system" is even more central a player when you consider the universe of potential crimes. Why don't drug dealers put their illegal and ill-begotten money in the bank? It's because the bank is obligated to ask a million questions, and occasionally, to freeze accounts. Why don't North Korean hackers request payment by bank transfer of USD? Because those payments can be put on hold or reversed by the financial system, which is a tool of the "police" in a way that Bitcoin never can be or will be.
The "financial system" is literally a technical system which has been effectively deputized by the "police", and as a matter of technical reality the "financial system" enforces the laws in ways that bitcoin (and exchanges, custodians, etc) are designed to prevent. Financial systems sometimes return stolen money and enforce laws with the involvement of literal police, but mostly not.
Some may not like the laws, and they can argue for why bitcoin is great. But if you like the laws, you should grapple with the fact that Bitcoin was designed to robustly foil the laws. On purpose! This property is called "permissionless" or "censorship-proof" by people that like it.
The "financial system" is even more central a player when you consider the universe of potential crimes. Why don't drug dealers put their illegal and ill-begotten money in the bank? It's because the bank is obligated to ask a million questions, and occasionally, to freeze accounts. Why don't North Korean hackers request payment by bank transfer of USD? Because those payments can be put on hold or reversed by the financial system, which is a tool of the "police" in a way that Bitcoin never can be or will be.
The "financial system" is literally a technical system which has been effectively deputized by the "police", and as a matter of technical reality the "financial system" enforces the laws in ways that bitcoin (and exchanges, custodians, etc) are designed to prevent. Financial systems sometimes return stolen money and enforce laws with the involvement of literal police, but mostly not.
Some may not like the laws, and they can argue for why bitcoin is great. But if you like the laws, you should grapple with the fact that Bitcoin was designed to robustly foil the laws. On purpose! This property is called "permissionless" or "censorship-proof" by people that like it.