The UK must move within a “finite window” of 12 to 18 months to keep up with other countries developing regulatory frameworks for crypto and digital assets, according to British lawmakers.

Following an inquiry launched in August last year, the All Party Parliamentary Group (APPG) for Crypto and Digital Assets published a report on Monday highlighting the need for "urgent" regulation of the market.

The investigation found that with the rapid growth of digital assets in recent years, cryptocurrency is “here to stay” and if the UK wants to be a leader in the market it needs to act quickly on regulation to keep up with other regions that are already developing rules.

"Given the rapid growth of cryptocurrency and digital assets, the timing of this report is vital to protect consumers whilst ensuring the UK’s leadership in this sector can be realised," said chair of the Crypto and Digital Assets APPG, Dr Lisa Cameron MP.

The report warns that without without comprehensive regulation, cryptocurrencies present considerable risks particularly in terms of consumer protection, economic crime, and financial stability.

The APPG said that its research revealed that cryptocurrency and digital assets are best regulated within existing and new financial services regulations.

The group also warned that there are still "significant concerns" around whether regulators currently have the resources, capacity and technical expertise required to deliver on their responsibilities.

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