The British Government is mounting a crackdown on the virtual currency Bitcoin amid rising concerns about money laundering and tax evasion.
The Treasury has said it intends to regulate the digital currency to bring it in line with anti-money laundering and counter-terrorism financial legislation.
Under the EU-wide plan, online platforms where Bitcoins are traded will be required to carry out due diligence on customers and report suspicious transactions.
The move is designed to end the anonymity which has made the currency attractive to criminals.
Organisations around the world were brought to a standstill earlier this year by hackers who demand ransoms paid in Bitcoin to unlock their computers.
A Treasury spokesman said: "We have clear tax rules for people who use crypto-currencies and like all tax rules, these are kept under review.
"We also intend to update regulation to bring virtual currency exchange platforms into anti-money laundering and counter-terrorist financing regulation."
