The package will give the Financial Conduct Authority broader powers to regulate the sector, including monitoring how firms operate and advertise their products, sources familiar with the matter told FT.

There would also be restrictions on companies selling into the British market from overseas, as well as plans for how crypto firms can be wound down, the people added.

These new regulations come on the heels of the market turmoil following the collapse of cryptocurrency exchange FTX, which filed for U.S. bankruptcy court protection last month.