Investments  

Treasury to regulate Bitcoin within months

In its warning the FCA said ICOs are “very high-risk, speculative investments” where there is likely to be no investor protection.

Meanwhile Esma said consumers risk losing all their capital if they invest in ICOs, adding that some of these coins had “no tangible value”.

David Scott, an adviser at Clydebank Financial Services, said Bitcoin is the "poster child of an unhinged financial system".

He said abundant liquidity and rising debt levels in the global economy resemble conditions last seen before the global financial crisis of 2008, with even the reality of rising interest rates unable to halt the rise in asset prices.

david.thorpe@ft.com