PM threatens crackdown on bitcoin

THERESA May has threatened to crack down on bitcoin amid fresh concerns that it is being used by criminals to launder their illgotten gains.

The digital currency surged from under $1,000 to almost $20,000 last year as speculators piled in.

But its value has since plunged by nearly half as the bubble started to burst.

The wild price swings have alarmed regulators around the world and have already led to crackdowns in large markets such as China and South Korea.

Its anonymous nature also raises fears that criminals are using bitcoin to clean dirty money earned from drug dealing.

Yesterday, the Prime Minister said: ‘In areas like cryptocurrencies, like bitcoin, we should be looking at these very seriously.’

Her words were widely echoed by bosses gathered at the Swiss town of Davos. Larry Fink of investment behemoth BlackRock said: ‘These are just an index of money-laundering as much as anything.’

International Monetary Fund chief Christine Lagarde said bitcoin’s links to crime are unacceptable and action is needed.

‘There will be new rules and we need to ensure they’re not falling into a trap,’ she said.