Bitrace Conducts Cryptocurrency Crime and Money Laundering Investigation Training for Hong Kong Customs
Recently, Bitrace was invited to the Hong Kong Customs Headquarters to conduct a "Cryptocurrency Crime and Money Laundering Investigation Training." As financial crimes involving cryptocurrencies continue to evolve, the training aimed to enhance law enforcement officers' expertise and investigative skills, enabling them to more effectively combat illicit activities in the digital asset space.
During the one-day training, Bitrace CEO Isabel Shi and Co-founder Hugo Hu delivered systematic insights across five core modules:
- Fundamentals of Cryptocurrency – Introduction to blockchain technology, cryptocurrencies, and their ecosystem.
- Overview of Cryptocurrency Crimes and Money Laundering – Analysis of common financial crimes involving cryptocurrencies, including fraud, scams, and money laundering techniques.
- On-Chain Investigation and Analysis – Techniques for tracing cryptocurrency transactions, identifying illicit fund flows, and leveraging blockchain analytics.
- Bitrace Pro and Investigative Tools – Live demonstration of Bitrace’s proprietary investigative tools and solutions for real-time blockchain analysis.
- Case Studies and Practical Exercises – Examination of real-world cases and hands-on simulations to enhance practical skills.
During the training, Isabel Shi provided an in-depth analysis of the current global landscape of cryptocurrency-related crimes and the latest developments in anti-money laundering (AML) regulations and RegTech across major jurisdictions. She emphasized that as an international financial center, Hong Kong is at a critical juncture in the global cryptocurrency regulatory framework. With increasing international scrutiny on illicit activities involving digital assets, Hong Kong must proactively establish AML standards tailored to its market needs—not only aligning with global regulatory frameworks but also integrating practical compliance measures suited to its local financial ecosystem.
Isabel also highlighted that building an efficient AML system is essential not only for combating money laundering and terrorist financing but also for enhancing Hong Kong’s competitiveness in the global crypto market. A strong regulatory framework can attract compliant digital asset enterprises, fostering innovation and sustainable growth in the fintech sector.
Additionally, Hugo Hu guided participants through real-world case studies, demonstrating how to conduct funds flow analysis and trace suspicious transactions. Using Bitrace Pro, he showcased blockchain data analysis techniques to help law enforcement officers understand how criminals exploit complex transaction pathways to conceal fund origins and provided effective investigative strategies and methodologies.
In February 2024, the Hong Kong government released a public consultation paper on "Legislative Proposals to Regulate Virtual Asset Over-the-Counter (VAOTC) Trading", proposing a licensing regime requiring all VAOTC platforms to apply for a license from Hong Kong Customs.
Through this comprehensive training, Hong Kong Customs officers gained deeper insights into cryptocurrency investigation strategies, enhancing their ability to identify, analyze, and combat crypto-related crimes. Bitrace remains committed to supporting regulatory bodies and law enforcement agencies in safeguarding the security and compliance of the cryptocurrency ecosystem.
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