Hong Kong Customs partnered with the University of Hong Kong to create a forensic tool designed to trace virtual asset transactions, according to a June 12 report from the South China Morning Post.
Hong Kong develops tool to track illegal #crypto transactions
Hong Kong Customs, in partnership with a local university, is developing a forensic technology designed to identify crypto transactions linked to money laundering.
These efforts are driven by the high level of… pic.twitter.com/CJub0rPQ9c
— Icekento
(@icekento1) Assistant Commissioner Mario Wong Ho-yin said the department had handled seven cryptocurrency-related money laundering cases between 2021 and May 2025, involving over HK$9 billion.
Crypto Fraud Cases Prompt New Law Enforcement Collaboration
Wong said these offenses crossed international borders and required collaboration among law enforcement agencies, academic institutions, and the financial sector.
“These money laundering threats are characterised by a transnational and borderless nature, and no single agency can tackle this problem alone,” Wong said during a media briefing.
In one case, HK$1.8 billion moved through more than 1,000 transactions involving five companies and 18 local bank accounts. Two suspects allegedly moved HK$760 million using a cryptocurrency platform.
The partnership builds on earlier work with HKU, where Hong Kong Customs had used the university’s forensic tools to investigate copyright infringement cases. Professor Yiu Siu-ming of HKU’s School of Computing and Data Science said the risks tied to virtual assets would likely grow as adoption increases.
“Different issues will arise when so many products emerge, but current laws and regulations are not necessarily comprehensive. Another factor to note is the safety of these platforms,” he said.
“This will help us fulfil the evidence requirements from the court [when handling these cases]. Without the University of Hong Kong’s technical advice, it would be difficult for us to do so,” Wong added.
Hong Kong Broadens Digital Finance Strategy
The two parties have also begun training officers from both local and international agencies on how to investigate digital asset-related crimes. A recent three-day workshop included attendees from eight jurisdictions, including mainland China, India, and New Zealand.
The initiative coincides with Hong Kong’s ongoing efforts to establish itself as a regulated hub for digital finance. The city’s e-HKD pilot program is now in its second phase, testing practical applications for a central bank digital currency, such as settlement and cross-border use.
— Cryptonews.com (@cryptonews) June 11, 2025
Efforts to develop crypto transaction tracing tools support Hong Kong’s broader digital finance agenda. These developments reflect closer alignment between emerging payment systems and enforcement capabilities. The goal is to balance increased financial access with stronger systemic oversight.
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