Who said anything about funding north korea? Just make it illegal to do so. Why does that assume violating my privacy?
You actually can't really stop privacy enabled cryptocurrencies. By all means, I'd like to see a concerted effort to do so. (Because poking the bear will just fuel more cryptographic innovation that dodges control :P)
If I use Tornado Cash, I'm not funding North Korea -- I'm simply using their service. I have no knowledge of who is receiving my stuff and no intent to fund North Korea, therefore I am not funding North Korea. If it happens by accident then oh well, there's no realistic way to tell it happened anyway and there's certainly no way for me to tell it did