Hong Kong Customs Partners with HKU to Trace Cryptocurrency Transactions

Hong Kong Customs has expanded its enforcement capabilities in the cryptocurrency space by partnering with the University of Hong Kong (HKU) to develop a forensic tool designed to trace virtual asset transactions. This collaboration aims to address the growing threat of money laundering and other financial crimes facilitated through cryptocurrencies.

Assistant Commissioner Mario Wong Ho-yin highlighted the transnational nature of these crimes, emphasizing the need for collaboration among law enforcement agencies, academic institutions, and the financial sector. He noted that between 2021 and May 2025, the department handled seven cryptocurrency-related money laundering cases, involving over HK$9 billion. One notable case involved HK$1.8 billion moved through more than 1,000 transactions, highlighting the complexity and scale of these operations.

The partnership with HKU builds on previous collaborations where Hong Kong Customs utilized the university’s forensic tools to investigate copyright infringement cases. Professor Yiu Siu-ming of HKU’s School of Computing and Data Science noted that as the adoption of virtual assets increases, so do the associated risks. He emphasized the need for comprehensive laws and regulations to address these emerging challenges.

Wong also underscored the importance of the university’s technical advice in meeting the evidence requirements for court cases. The collaboration extends beyond tool development to include training for officers from both local and international agencies. A recent three-day workshop attracted attendees from eight jurisdictions, including mainland China, India, and New Zealand, demonstrating the global scope of this initiative.

This effort aligns with Hong Kong’s broader digital finance strategy, which includes the e-HKD pilot program. The program, now in its second phase, is testing practical applications for a central bank digital currency, such as settlement and cross-border use. The development of crypto transaction tracing tools supports this agenda by enhancing enforcement capabilities and ensuring stronger systemic oversight.

In summary, the collaboration between Hong Kong Customs and HKU represents a significant step in the region’s efforts to combat cryptocurrency-related financial crimes. By leveraging academic expertise and fostering international cooperation, the initiative aims to create a more secure and regulated digital finance ecosystem. This development underscores the region’s commitment to balancing increased financial access with robust enforcement measures.