Bitrace Provides On-chain Fund Tracking Training to the Hong Kong Police Force
Hong Kong, known as one of the world’s most open and business-friendly regions, is becoming the cryptocurrency hub of Asia, thanks to the Special Administrative Region’s supportive policies and fintech infrastructure. Meanwhile, local regulatory and law enforcement agencies are actively enhancing their understanding of the crypto ecosystem to better maintain a healthy business environment and protect citizens’ crypto assets.
Recently, blockchain data analytics company Bitrace provided on-chain fund tracking training to the Hong Kong Police Force. This training aimed to share cryptocurrency crime investigation experiences and on-chain fund tracking methods with officers from the Cyber Security and Technology Crime Bureau (CSTCB) and the Commercial Crime Bureau (CCB).
During the session, Bitrace CEO Isabel systematically introduced the trends of using crypto assets in cybercrime. Due to the inherent permissionless and decentralized nature of crypto assets, the lag in understanding crypto crime techniques by Web3 companies and regulatory agencies, and the complexity and inefficiency in the investigation, case filing, and recovery processes, the use of crypto assets in cybercrime has significantly increased in recent years. To foster a healthier Web3 ecosystem and protect users’ funds, collaboration between regulatory bodies and Web3 companies is essential to effectively implement preventive measures against risk funds.
Additionally, Bitrace Co-founder Quan and technical experts demonstrated the utilization and flow of crypto funds in activities such as online gambling, illicit trade, money laundering, and fraud using the canvas feature of the BitracePro crypto asset tracking and analysis platform. They analyzed the methods and fund flows in crypto crimes through real and ongoing cases, which received high recognition.
Beyond the training, Bitrace also engaged in further discussions and communication with the Commercial Crime Bureau (CCB) and the Cyber Security and Technology Crime Bureau (CSTCB). The law enforcement officers’ recognition of the crypto industry and their determination to protect citizens’ crypto assets were impressive. It is believed that in the near future, Hong Kong will undoubtedly bring the center of the crypto world back to the East.
Bitrace Supports Hong Kong’s Web3 Regulation
Hong Kong has long been fertile ground for the crypto economy, with numerous unique cryptocurrency trading platforms and offline exchange stores emerging over the years. These institutions, complementing licensed trading platforms (VASPs) and mainstream exchanges, provide fiat on/off-ramp (OTC) services to local users, tourists, and businesses. However, this also makes it easier for illicit crypto assets to be anonymously laundered, creating significant regulatory blind spots.
Leveraging machine learning and pattern recognition algorithms, Bitrace has built a database of over 300 million address tags, including entity tags (such as DeFi platforms, mining pools, digital asset exchanges) and risk behavior tags (such as fraud, terrorism, drugs, illegal gambling, money laundering, and illicit industries). This helps regulatory authorities quickly identify the actual controllers or uses of these addresses.
Usage scenarios include:
- Before risk events occur: Comprehensive view of risk activities related to industry entity addresses, determining the risk type and level of addresses.
- During risk events: Predict the involvement of related entity addresses and develop preventive regulatory measures.
- After risk events: Timely track the flow of risk funds, assess the scope of impact, and minimize negative consequences.
Contact us:
Website: https://www.bitrace.io/
Email: bd@bitrace.io
Twitter: https://x.com/Bitrace_team