Hong Kong developing tool to track crypto-based money laundering: report

Hong Kong Customs associates itself with the University of Hong Kong to develop a new tool for tracing cryptocurrency transactions, aimed at combating the increase in money laundering activity linked to virtual assets.

The partnership comes as the authorities reveal seven suspicious cases totaling more than $ 9 billion HK (1.1 billion US dollars) in recent years, according to the South China Morning Post statement.

Mario Wong Ho-Yin, Deputy Intelligence Commissioner and the Survey in the Customs and Excise Department, said Thursday that the effort was part of a broader strategy to improve cooperation with the university world, the financial sector and the international police.

Among 39 cases of money laundering reported locally between 2021 and May 2025, seven involved virtual assets, according to SCMP. A case of 2024 led to the arrest of three suspects linked to more than 1,000 suspicious transactions totaling $ 1.8 billion HK, with $ 760 million HK which would have been treated via a cryptocurrency platform.

While the specific details of the tool remain confidential, Wong noted that it was based on forensic technology already used by customs to monitor violations of copyright online, according to the report.

Crypto money laundering still a great concern

Silver money laundering linked to crypto remains a global concern, with the national risk assessment of Luxembourg in 2025 warning Exchanges still have a “high” risk despite lower negotiation volumes. The country has cited large customer bases, anonymous online activities and international operations such as key vulnerabilities.

In Germany, the authorities close Exch and seized $ 38.2 million in crypto, accusing it of money laundering from main hacks like those targeting bybt.

In Australia, Austrac recently reported Crypto ATM as a growing threat, warning the legal proceedings if they do not meet anti-flowage standards. With more than 1,600 machines now operating across the country, most of them accepting species, regulators say that they offer an easy route for criminals to move illicit funds.