Digital currencies such as Bitcoin offer ‘no intrinsic value and serve no useful social purpose’ and were easily prone to scams, fraud and money laundering, claimed a report on crypto by the Treasury Committee.

It follows proposals from the Financial Conduct Authority (FCA) in February to regulate the crypto industry by bringing it under financial services law.

However, MPs said the government should take a different approach in recognising the risks of ‘unbacked’ crypto assets, adding that they ‘more closely resemble gambling’ than a financial service.

They were also concerned that regulated crypto assets like a financial service, under the oversight of the FCA, would create a ‘halo effect’ which could lead to consumers believing their assets were safer than they actually were.

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