Attempts to tame the “wild west” of digital currencies will backfire and damage the UK fintech market, experts have warned.

A plan by MPs to make the Financial Conduct Authority crack down on illegal activity in the crypto industry is “ashamedly geared around Bitcoin” and could penalise any other kind of asset, a new report argued.

Patrick Curry, chief executive of the British Business Federation Authority has claimed that inappropriate legislation could force crypto exchanges to move out of the UK, damaging the country’s standing as a fintech hub.

The BBFA, law firm Baker Botts, crypto analytics company Novum Insights and crypto expert Hazem Danny Al Nakib co-authored the report, which argues that “bad regulation is worse than no regulation at all”.