Hong Kong Builds Crypto Tracking Tool to Combat Money Laundering

Highlights:

• Hong Kong is creating a crypto tracker system with the University of Hong Kong.
• Seven laundering cases using crypto have involved over HK$9 billion since 2021.
• An agency training workshop was conducted involving eight countries.

The University of Hong Kong and Hong Kong Customs are building a crypto-tracking tool to monitor suspicious digital transactions. According to the report, the partnership is intended to address the increased use of cryptocurrencies in financial crime. Authorities have claimed that there is a rise in the number of illegal trades that conceal the transactions as normal business activity.

Authorities observed 39 significant money laundering situations between 2021 and May 2025, and seven involved crypto. A total of over HK$9 billion of suspected crime proceeds was involved in these seven incidents. Authorities are convinced that closer collaboration is needed because criminals take advantage of borderless digital technologies.

One of the cases reported featured more than 1,000 suspicious transfers totaling HK$1.8 billion. These transactions were channeled using five companies and 18 local bank accounts. The investigators have arrested three people, and two of them are alleged to have used a crypto platform to handle HK$760 million.

The tracking tool will assist law enforcement in unearthing such elaborate financial transactions more effectively. Moreover, the new technology will complement the current forensic tools that are already in use to fight other cybercrimes like digital piracy.

Hong Kong Customs develops tool to track crypto-based money laundering

Hong Kong Customs is working with the @HKUniversity to create a digital tool for tracking cryptocurrency transactions involved in money laundering, @Cointelegraph reported. From 2021 to May 2025, Hong Kong…

— CoinNess Global (@CoinnessGL) June 12, 2025

Rising Laundering Risks Push for Crypto Tracking Tool

Officials have cautioned that the increases in the use of digital assets have continued to draw in malefactors. With the increase in the number of users on cryptocurrency platforms, the threat of illegal activity also increases. Law enforcement anticipates that more crimes will be identified as the volume of trading continues to rise between regions.

The crypto tracking tool will be a digital service to track suspicious transactions on blockchain networks. Moreover, it is being formulated to ensure the legality of evidence for prosecution. The University of Hong Kong is spearheading the development of the system, as it has the capability in data science.

Because of the sensitivity of the investigations, the authorities have not disclosed information on how the tool operates. They also stressed confidentiality as a way of keeping security in their operations. The department, however, confirmed that the tool would facilitate domestic and cross-border investigations. The platform will enable financial agencies to determine fraudulent trades and connect digital wallets to illegal networks by increasing detection abilities. The system could form a fundamental tool in subsequent crackdowns on financial crimes in the region.

Training Initiatives Expand Cross-Border Collaboration

A three-day workshop was also organized by Hong Kong Customs and the University of Hong Kong to enhance the regional capabilities. The topic of the event was devoted to the emerging trends and investigation challenges in crypto crime.

Participants included law enforcement and consular officials representing eight jurisdictions. Representatives of China, India, Iran, Thailand, New Zealand, and Singapore. These sessions provided training on how to detect suspicious digital activity and blockchain use in criminal finance. In addition to workshops, the two institutions plan to offer continuous training to international and local officers. This effort is part of a broader plan by Hong Kong to ensure that it is ready to deal with emerging risks in the crypto sector.

The department is collaborating with finance specialists, law enforcement agencies, and academic partners to be ahead of criminal innovation. Money laundering schemes are getting increasingly advanced. Consequently, a crypto tracking tool is likely to become an essential part of future enforcement.