BRITS investing in cryptocurrency could be given extra protection thanks to new proposals by the government.
It comes as Brits lost £329million in crypto scams in 2022.
Ministers are looking to regulate the cryptocurrency sector to help consumers avoid risks.
Cryptoassets – known as “crypto” – are relatively new, diverse and constantly evolving assets that have a range of potential benefits, as well as risks.
In the year to December 2022, reported losses in crypto scams rose by 72% – resulting in £329million lost, according to Action Fraud
Full details are set to be published on Wednesday next week but the government is aiming to manage the industry.
In a statement, the Treasury said its new “robust approach” in regulating the sector will mitigate “the most significant risks”, but also allow the UK to tap into the advantages of crypto technologies.
The proposals include laying down rules on promotions, which have to be clear and not misleading.
It’d also implement new regulations to prevent so-called pump and dump, which is when an individual artificially inflates the value of a crypto asset before selling it.
The move comes after a series of high-profile global failures have rocked the relatively new sector.
For example, FTX, which was one of the world’s biggest crypto exchanges, collapsed into bankruptcy in November and its founder has been charged with fraud in the US.
The Treasury…
