Politicians give green light to regulators for crypto crackdown

The announcement comes after the completion of a report from the Treasury Committee, City minister John Glen which called for the City watchdog to seize greater power to oversee the industry which exposes consumers to a host of risks.

Mr Glen said: “The government will consult early next year to explore whether other crypto-assets, that have comparable features to specified investments but that fall outside the current perimeter, should be captured in regulation. Subject to this consultation, the Government stands ready to expand the regulatory perimeter.”

Mr Glen said the government had asked the financial regulator to consider taking on the role of supervising companies in the areas of money laundering and terrorist financing.

He added that the government also believed “benefits could potentially develop in the future through the use of initial coin offerings as a capital raising tool”.

FCA regulation would ensure there are formal mechanisms for consumer redress or investor compensation.

The committee has said the UK could become a global centre for cryptocurrencies if those protections were introduced.