Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the risk to those using cryptocurrency exchanges of being targeted by cybercriminals.

This Government is taking the increased use of cryptoassets seriously. We want to harness the potential benefits of the underlying distributed ledger technology, while managing the risks posed by developments in cryptoassets to consumers and markets.

The Government has set up a Cryptoasset Taskforce comprising of HM Treasury, the Bank of England and the Financial Conduct Authority. The Taskforce’s objectives include exploring the impact of cryptoassets, and the potential benefits and challenges of the application of distributed ledger technology in financial services. It will also assess what, if any, regulation is required in response. The Taskforce will deliver a report in September 2018.

HM Treasury is also liaising with the National Crime Agency and the National Cyber Security Centre to better understand their approach to the cyber security risks to consumers of cryptoassets.