Hong Kong Customs Teams Up with University to Fight Crypto Money Laundering

Hong Kong Customs is joining forces with the University of Hong Kong to create a badass tool for tracking down those shady cryptocurrency transactions. They're on a mission to tackle the skyrocketing money laundering activity in the virtual asset world.

The timing couldn't be more perfect, as authorities spill the beans on seven suspected cases that have racked up over HK$9 billion (US$1.1 billion) in recent years. Yeah, you read that right – billions!

Mario Wong Ho-yin, the Assistant Commissioner for Intelligence and Investigation at the Customs and Excise Department, dropped the news on Thursday. He said this partnership is just one piece of their master plan to boost collaboration with brainiacs in academia, the financial sector, and international law enforcement. Watch out, criminals!

Between 2021 and May 2025, Hong Kong saw 39 money laundering cases reported locally, with seven of them involving virtual assets. One case from 2024 alone led to the arrest of three suspects linked to over 1,000 sketchy transactions totaling HK$1.8 billion. And get this – HK$760 million of that dirty cash was allegedly processed through a crypto platform. Crazy, right?

While the juicy details of this new tool are still under wraps, Wong spilled that it's building on the forensic tech Customs already uses to keep an eye on those pesky online copyright violations. They're not messing around!

Crypto Money Laundering Still a Big Concern

Listen up, folks – crypto-related money laundering is still a global headache. Luxembourg's 2025 National Risk Assessment sounded the alarm, saying that exchanges are still a "high" risk, even with lower trading volumes. They pointed to huge client bases, anonymous online shenanigans, and international operations as the main weak spots.

Over in Germany, authorities pulled the plug on eXch and seized a whopping $38.2 million in crypto. They accused the platform of laundering dough from massive hacks, including those targeting Bybit. Talk about a takedown!

Down under in Australia, AUSTRAC is waving a red flag at crypto ATMs, calling them a growing threat. They're warning providers to shape up and meet anti-money laundering standards, or else face legal action. With over 1,600 machines now scattered across the country, most of them gobbling up cash, regulators say they're an easy way for criminals to move their dirty money. It's time to crack down!