Hong Kong is taking significant steps to combat digital asset crime with the launch of CryptoTrace, a blockchain forensics tool developed in partnership with the University of Hong Kong.
What is CryptoTrace?
CryptoTrace is a blockchain analytics tool designed to trace laundered funds and support anti-money laundering (AML) enforcement. The tool is a response to modern laundering schemes involving more than HK$9 billion linked to criminal activity.
Comparison of CryptoTrace and Chainalysis
CryptoTrace is tailored for Hong Kong's legal environment, offering multilingual support and better integration with local evidentiary standards. Unlike Chainalysis, CryptoTrace is available to regional governments at subsidized rates.
Future Deployment of CryptoTrace
The pilot deployment of CryptoTrace at Hong Kong Customs is scheduled for the second half of 2025, with plans for gradual expansion to other agencies and regional partners by 2026, allowing for iterative improvements based on feedback.
CryptoTrace not only promises to enhance digital finance investigations in Hong Kong but may also serve as a model for other countries, highlighting the importance of cooperation in combating money laundering.
