A worker cleans units at a cryptocurrency mining farm. 

Photographer: Andrey Rudakov/Bloomberg

A slew of regulatory moves announced this week is positive for the famously free-market-oriented cryptocurrency space, according to Fundstrat Global Advisors LLC.

Developments like the U.K. Financial Conduct Authority banning the sale of crypto derivatives and the U.S. Department of Justice issuing an enforcement framework are beneficial in the long term because they will help reduce nefarious activity in the industry, according to a report by David Grider, Tom Lee and Ken Xuan.

They cited regulators “cleaning up bad actors” as also helping. The market’s focus on news that Square Inc. bought Bitcoin and Bitcoin’s ability to push past $11,000 show that crypto can power through these things, the report said.

“Actions unsurprisingly indicate U.S. and global regulators are committed to stomping out illicit activity, securities violations, money laundering, price manipulation, and noncompliance with banking regulations,” the strategists wrote. “On balance, we view recent news as a positive for crypto markets, despite select smaller pockets of risk, and we believe the prevailing bull market trend is intact.”

Bitcoin has moved back above $11,000 after a successful defense of the $10,000 level in early September. Crypto enthusiasts were also cheered by Square Inc.’s purchase of $50 million in Bitcoin in a bet by Chief Executive Officer Jack Dorsey that it will be an instrument of financial empowerment.

Bitcoin is rising for a fourth day and has retaken the $11,000 level

In other recent developments, the founders of crypto trading giant BitMEX resigned their executive roles after being charged by U.S. authorities with skirting laws preventing money laundering. Cybersecurity pioneer John McAfee, who had been promoting cryptocurrencies, was arrested in Spain on U.S. tax-evasion charges.

Fundstrat cautioned that some areas within crypto might be vulnerable given the regulatory trajectory.

“We do see select crypto market segments as more exposed to

By Tom Wilson

LONDON, Sept 29 (Reuters)Financial firms and governments overwhelmingly see cryptocurrencies as risky, a major survey found on Tuesday, with the potential for bitcoin and other digital tokens for use in money laundering and sanctions busting among the chief worries.

Around 60% of respondents from financial firms, government and the private sector alike to the survey by the Royal United Services Institute think-tank and the Association of Anti-Money Laundering Specialists said cryptocurrencies were a risk rather than an opportunity. Illicit usage was the major concern.

The findings, one of the most detailed efforts yet to map out mainstream global views towards cryptocurrencies, lay bare the depth of scepticism towards the emerging tech.

They suggest an uphill struggle for the crypto industry to achieve wider acceptance, even as countries across the world grapple with how to regulate cryptocurrencies. The European Union will introduce new rules for some cryptocurrencies by 2024, documents showed last week.

The perception of criminal use of cryptocurrencies is deep-rooted, the survey found. Nearly 90% of respondents from financial firms said they were worried about crypto being used to launder money. Over 80% were worried about sanctioned actors using digital coins to circumvent the formal financial system.

“All respondents accept that cryptocurrencies are vulnerable to criminals,” the survey’s authors said.

The extent to which crypto is used for crime is unclear, with past research by major blockchain analysis firm Chainalysis this year putting the rate as low as 1% of all transactions.

Still, digital currencies are popular with cyber-criminals, as the July hack of major Twitter users to reap bitcoin shows.

Cryptocurrencies have also been used for the funding of militant groups. The U.S. Justice Department said last month it had targeted efforts by the military wing of Hamas, al Qaeda and Islamic