Bitrace at The Inclusion Conference: Exploring New Paradigms of Web3 Compliance and Security
In September 2025, during The 2025 Inclusion Conference on the Bund, a special forum organized by InvestHK and co-hosted by the Global Tokenization Association for Banking and Capital Markets was held at the main stage session “Global Dialogue and Cooperation.”
Bitrace was invited to join the panel discussion on “Compliance and Security Paradigm in the Web3 Era.” The roundtable brought together experts from legal, compliance, regulatory technology, and industry associations to explore the challenges and opportunities of compliance and security against the backdrop of Web3 development.
The panelists included:
- Andrew Fei, King & Wood Mallesons Partner
- Louise Liang, Bitrace COO
- Qifu Zhong, SlowMist Partner & CPO
- Helen Chen, FGA Trust CSO
- Lareina Wang, FinTech Association of Hong Kong Chair
During the discussion, Bitrace COO Louise Liang emphasized the critical role of regulatory technology in building compliance and security frameworks for Web3. She highlighted Bitrace’s guiding principle, “From Investigation to Prevention,” and shared how blockchain technology can be leveraged to enhance anti-money laundering (AML) and anti-fraud practices:
“In Web3, the cornerstone of AML and anti-fraud practices lies in on-chain labeling. The creation of such labels relies on two components: on-chain data analysis and off-chain intelligence gathering.
On-chain analysis, enabled by blockchain’s transparency, allows for lifecycle monitoring and quantitative assessment of address behavior, including transaction amounts, frequency, timing, counterparties, use of anonymity-enhancing protocols, or signs of classic money laundering patterns. Vertically, behavioral deviation analysis detects anomalies by comparing current activities with historical patterns. Horizontally, cluster analysis identifies hidden connections and common transaction patterns among addresses, revealing laundering networks or fraud syndicates.
Off-chain intelligence, built on long-term research into criminal ecosystems, enables the identification and tracking of illicit actors. The combination of off-chain intelligence and on-chain behavioral analysis significantly enhances the accuracy and effectiveness of labeling.”
Louise also called for the establishment of unified industry standards to strengthen intelligence collaboration and data interoperability among data providers, regulators, and VASPs. She noted that Bitrace has been working closely with regulators and enforcement authorities in Hong Kong, as well as industry participants, to advance the development of practical AML standards for Web3.
In addition, she stressed the importance of ongoing user education and awareness-building as a way to enhance overall market resilience to risks:
“Many fraud schemes are actually very simple, such as multi-signature authorization traps or phishing with similar wallet addresses. Yet due to lack of awareness, users often fail to prevent them in time. Once assets are stolen, recovery is extremely difficult. At Bitrace, we previously released a Web3 Anti-Fraud Handbook, summarizing typical cases, and we continue to analyze criminal methods and provide educational resources to the community.”
On the topic of RWA (Real World Assets) scaling, Louise remarked:
“RWA also requires a trusted data layer to support on-chain disclosures, fund flow tracking, and real-time monitoring. This is a fundamental requirement for risk management and sustainable ecosystem growth.”
She added that Bitrace is well-positioned to provide customized data solutions for RWA and stablecoin issuers.
Through this forum, Bitrace not only showcased its expertise in on-chain risk identification and regulatory technology, but also reaffirmed its commitment to driving industry standardization and advancing user education. Looking ahead, Bitrace will continue working with regulators and industry partners to shape a new paradigm of compliance and security in the Web3 era.
Contact us:
Website: www.bitrace.io
Email: bd@bitrace.io
Twitter: @Bitrace_team
LinkedIn：@bitrace tech
