Bitcoin transactions are traceable but that doesn't mean you will be able to track down the person who is sending the bitcoins and you never will if the address is not associated to anything that could be related to that person.

This kind of anonymity makes a "hole" for terorist to keep bitcoin since it's difficult to track it down who the owner of the address.
At my country, still not have a law but it's still not legal as normal payment ( means : use bitcoin with own risk )

Cash is more anonymous than Bitcoin, and if you have a massive amount of either you are faced with the same problem when you want to buy something worth a fortune legitimately. If you have Bitcoins they need converting to cash, then you have to deposit your massive amount of cash into a bank before buying something worth a fortune, and the bank will want to know where it came from.

You can't buy a mansion with cash, you have to go through the bank to buy it. There are a few companies selling lambos and mansions directly for Bitcoins, but you would still have to explain where they came from after buying your lambo and mansion. How many times have criminals had their lambos and mansions taken off them because they were suspected as being bought with proceeds of crime? Their source of cash was more anonymous than Bitcoin but they couldn't explain where it came from when they were asked about it.

All darknet markets where you can hire killers, buy drugs, weapons, etc, use bitcoin. So its a main currecy supporting criminal activity in the darknets. Thus why not terrorits? Maybe not good to sent 100 milion, but then to buy guns or probably bombs, require much less money, which can be paid by bitcoin.

They want to be able to freeze funds, which is not possible with bitcoin. But similarly, they can not freeze the movement of cash either. So I guess eventually all the regulations for cash will be applied to bitcoin, before more strict address-based regulation is in place

I don't see it as a problem. In fact, I think it's more of a necessary feature for a currency that is not government controlled. I see financial privacy as a basic human right and I am not alone with that.

With cash the government can still interfere and freeze accounts. But with bitcoin it is totally not possible, so there may be reason for government to dislike it

I don't think it'll be too much of an issue but then I will notice some issues where anonymity has played a big part in criminal activity.

If you are curious and ask why they are concerned with bitcoin anonymity, I think the answer is because they do not have sufficient knowledge about bitcoin and problems, they need time to learn if they are ready to accept bitcoin.