Hong Kong customs builds tool to track crypto money laundering
$1.1B in laundered crypto tied to Hong Kong cases since 2021
Hong Kong Customs, in collaboration with a local university, is developing a technology designed to detect crypto transactions linked to money laundering. The initiative is part of a broader strategy to strengthen cooperation with academia, the financial sector, and international law enforcement agencies.
According to the South China Morning Post, out of 39 locally registered money laundering cases between 2021 and May 2025, seven—worth over HK$9 billion (US$1.1 billion)—involved virtual assets.
One 2024 case led to the arrest of three suspects tied to over 1,000 suspicious transactions totaling HK$1.8 billion, of which HK$760 million were processed through a crypto platform.
The high level of criminal crypto activity prompted Hong Kong Customs and the University of Hong Kong to develop effective countermeasures. While project details remain undisclosed, the tool reportedly builds on forensic technology already used to track online copyright violations.
Global concern over crypto and money laundering
Hong Kong is not the only jurisdiction sounding the alarm over crypto-related money laundering.
According to Cryptonews, Luxembourg’s 2025 National Risk Assessment warns that crypto exchanges still pose a “high” risk, citing large customer bases, anonymous online activity, and international operations.
In Germany, authorities shut down eXch and seized US$38.2 million in crypto, linking the platform to laundering proceeds from major hacks, including Bybit-related incidents.
Meanwhile, Australia's AUSTRAC has flagged crypto ATMs as a growing threat. With over 1,600 cash-accepting machines nationwide, regulators warn that these ATMs offer criminals an easy channel for moving illicit funds and may soon face legal action for non-compliance.
As we wrote, Hong Kong adopts stablecoins bill
