According to new research, the Financial Conduct Authority (FCA) was conducting 87 investigations into the sector as of September, up from 50 a year earlier.

Proponents say cryptocurrencies such as Bitcoin offer a cheaper, faster way to move money, but critics say the sector is prone to fraud and asset price volatility.

David Heffron of law firm Pinsent Masons, which carried out the research, said the statistics would be encouraging for crypto businesses acting lawfully.

"The FCA's crackdown on businesses operating on its regulatory perimeter will instil a degree of confidence that products reaching consumers are less likely to be scams."