Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate her Department has made of financial losses to consumers caused by cryptocurrency-related scams; and what steps she is taking to improve (a) prevention, (b) enforcement and (c) consumer protection for those scams.

The Financial Conduct Authority (FCA)’s most recent consumer research publication provides indications of the levels of cryptoasset related fraud in the UK. This research is available online at: https://www.fca.org.uk/publication/research-notes/cryptoasset-consumer-research-2024-wave-5.pdf

The Government takes the issue of fraud very seriously and is developing a new and expanded fraud strategy to further protect the public and businesses from this appalling crime.

Relevant cryptoasset firms are already subject to UK financial promotions requirements, and required to register with the FCA for money laundering supervision.

Building on this, the Government is introducing a comprehensive financial services regulatory regime for cryptoassets this year. The new regime will provide further protections for UK consumers, by requiring firms offering them services to be authorised and regulated by the FCA.