The Cyber Security and Technology Crime Bureau (CSTCB) of Hong Kong has unveiled a new virtual asset analysis tool designed to enhance investigations into cryptocurrency-related crimes.
Named ‘CryptoTrace’, this innovative tool was created in partnership with the University of Hong Kong. An official announcement highlighted that CryptoTrace provides “advanced intelligence and investigation support to crime investigation units.”
The CSTCB recently carried out virtual asset investigations and conducted training sessions for users of CryptoTrace in March. These training sessions were intended to bolster the ability of frontline officers to manage cases involving virtual assets.
Beyond addressing cryptocurrency-related offenses, the CSTCB has been actively collaborating with various stakeholders across different sectors.
The Bureau reaffirmed its commitment to strengthening partnerships and maintaining its mission to safeguard the security of Hong Kong’s digital landscape while working towards establishing a secure, resilient, and responsible virtual asset ecosystem.
Emerging Threats Highlighted by Hong Kong Crime Bureau
During his address at the Cyberport Blockchain Security Conference 2025 in April, Chief Superintendent Lam Cheuk-ho of the CSTCB underscored the evolving threats present in the cryptocurrency landscape.
He stressed the necessity for exchanges, regulatory bodies, and law enforcement to share their responsibilities in combating these challenges, as detailed in the release.
Furthermore, Chief Inspector Yan Ngan Hoi-yan provided an analysis of trends and instances of anti-money laundering efforts pertinent to crypto-related offenses.
CSTCB officers also participated in a summit organized by the Blockchain Compliance Professionals Association, where they shared insights regarding Hong Kong’s Web3 sector.
They offered a comprehensive analytical perspective from a law enforcement standpoint, reaffirming their commitment to collaborating with stakeholders “to construct a safer and more sustainable Web3 ecosystem.”
Hong Kong Faces Significant Financial Losses Due to Crypto Scams
A legal firm based in Hong Kong, Titus, reported that the city experienced a staggering loss of $3.1 billion due to cryptocurrency scams in the first ten months of 2024.
In October 2024, local police dismantled a criminal organization involved in a cryptocurrency investment scam valued at HK$360 million (approximately $46.35 million).
Additionally, authorities recently identified a complex fraud scheme surrounding the fictitious “National Hong Kong Coin,” which misled the public into thinking that the government was on the verge of launching an official digital currency.
Despite these challenges, Hong Kong was ranked as the world’s second-most crypto-friendly city according to the latest Crypto Report 2025 by the migration platform Multipolitan.
The post Hong Kong Police Develop ‘CryptoTrace’ Tool to Help Track Online Crypto Crimes appeared first on Finance Newso.
