The Treasury has enlisted Britain’s spy agency to probe the risks associated with Bitcoin, as the digital currency’s price continues to soar.

Chris Ensor, the deputy director for cyber skills and growth at the National Cyber Security Centre, an arm of GCHQ, told The Telegraph it is investigating potential security risks on behalf of for Government departments.

“We are interested in anything that could affect the country, so Bitcoin is a major thing now,” Mr Ensor said. He said work on the cryptocurrency included assessing how it works as the Treasury considers a crackdown, as well as the potential benefits of blockchain, its underlying technology.

Bitcoin’s stunning rise, from less than $1,000 (£745) at the start of the year to as much as $17,000 last week, has attracted the attention of institutional investors but also caught the eye of governments and regulators concerned about its unregulated nature.

There is currently no regulation in the UK for Bitcoin exchange sites or the hundred ATM-style Bitcoin machines that can be used to buy cryptocurrency across the UK. In comparison, the US enforces ID checks and takes pictures of anyone using a machine to they are traceable.