The price of cryptocurrency started booming near the start of the Covid-19 pandemic leading many people to start investing in the highly volatile currencies.

But the past year has seen wild fluctuations in the price of Bitcoin, which is the most sought-after cryptocurrency. In July the value of one Bitcoin fell as low as £21,000 before rising rapidly to a peak just under £50,000 by the beginning of November. Since then, its value has again plummeted by nearly 50 per cent to just £31,000.

The FCA said it wanted to address concerns about the ease and speed with which people can make high-risk investments by proposing a significant strengthening of its rules on how high-risk financial products are marketed.

Under newly proposed rules, it will ensure firms that approve and communicate financial marketing improve their risk warnings on ads and ban incentives to invest, for example new joiner or refer-a-friend bonuses.

Those looking to make certain high-risk...