Bitrace, a prominent data analysis company, has recently taken steps to address the rising issue of cryptocurrency-related crimes in Hong Kong. As part of their Corporate Social Responsibility efforts, the company organized training sessions for members of the Hong Kong Police Force. The focus of these sessions was on on-chain fund tracking, aiming to enhance law enforcement’s understanding of blockchain technology in the face of Hong Kong’s growing prominence as a cryptocurrency hub. Specifically, the Cyber Security and Technology Crime Bureau (CSTCB) and Commercial Crime Bureau (CCB) benefited from insights and methods shared during these sessions.
During the training sessions, Bitrace’s technical experts provided demonstrations on the usage and circulation methods of digital asset funds in various illicit activities such as online gambling, money laundering, illicit trades, and fraud. These demonstrations were crucial in helping law enforcement officers understand the complexity of investigating cryptocurrency-related crimes. Bitrace CEO, Isabel SHI, expressed the company’s commitment to supporting law enforcement efforts, stating, “Improved legislation and enhanced prevention of crypto crimes will better promote the development of Web3.”
Over the past three years, Hong Kong has witnessed a substantial increase in reported cryptocurrency-related crimes, with cases surging from 1,397 to 3,415 and corresponding amounts rising from HKD 824 million to HKD 4.398 billion. This nearly tripled figure highlights the pressing need for effective measures to combat such crimes. In response to this trend, the Securities and Futures Commission (SFC) in Hong Kong has intensified its efforts in information disclosure. This includes sharing extensive information about virtual asset trading platforms, such as a list of suspicious platforms, to ensure transparency and timely updates for the public.
In line with these efforts, Hong Kong is currently moving towards approving spot Bitcoin ETFs in the region. The SFC’s recent update to its virtual asset management fund company list on April 10 included the addition of Harvest International Asset Management Company and China Asset Management (Hong Kong) Co., Ltd. These additions signify a step towards regulating virtual asset management in Hong Kong and ensuring the legitimacy and security of cryptocurrency trading platforms in the region.
As the landscape of cryptocurrency-related crimes evolves, proactive measures such as the training sessions organized by Bitrace for the Hong Kong Police Force are essential to combatting illicit activities in the digital asset space. Collaboration between technology experts and law enforcement agencies is crucial in ensuring a safer and more secure environment for cryptocurrency transactions in Hong Kong.
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