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The Government has said it will reveal “ambitious plans to protect consumers” from the risks of crypto.
Ministers are aiming to bring the sector closer in line with the regulation that governs how traditional financial institutions work, but will not publish details until Wednesday.
In a statement, the Treasury said that 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 move comes after a series of high-profile global failures have rocked the relatively new, burgeoning sector.
The Treasury said that it “will seek to regulate a broad suite of cryptoasset activities”, in a way that is consistent to how it approached traditional finance.
Crypto trading venues will be responsible for “defining the detailed content requirements for admission and disclosure documents”.
This, the Treasury said, would ensure that “crypto exchanges have fair and robust standards”.
It also said that it would strengthen rules around financial intermediaries and custodians.
“The consultation will seek views on improving market integrity and consumer protection by setting out a proposed crypto market abuse regime,” the Treasury said.
Economic Secretary to the Treasury Andrew Griffith said: “We remain steadfast in our commitment to grow the economy and enable technological change and innovation – and this includes cryptoasset technology.
“But we must also protect consumers who are embracing this new technology – ensuring robust, transparent, and fair standards.”
The full details of the consultation will be published on Wednesday morning, the Treasury said.
The consultation will run until April 30 this year, the Treasury said.
Labour called for immediate action rather than more consultations.
Shadow city minister Tulip Siddiq said: “Labour has been calling for a crackdown on the crypto wild-west for months. All the Conservatives are promising is further consultations – we need action now.
“Under this incompetent Government, millions of British consumers’ savings have been put at risk by the collapse of cryptocurrencies while crypto-related scams have hit record levels. Despite this, the Conservatives continue to promote cryptocurrency gimmicks.”