Hong Kong Customs is collaborating with the University of Hong Kong to create a new tool for tracing cryptocurrency transactions. This initiative aims to prevent money laundering stemming from virtual assets, according to reports. The partnership comes as authorities have investigated seven suspected cases totaling over HK$9 billion (US$1.1 billion) since 2020. Assistant Commissioner Mario Wong Ho-yin stated that this effort is part of a broader strategy for collaboration with universities, financial institutions, and international law enforcement agencies. These recent investigations reveal that nearly 40 money laundering cases involving virtual assets have been reported since 2021, including one prominent case where authorities arrested three individuals linked to over 1,000 suspicious transactions totaling HK$1.8 billion. While details of the new tool remain confidential, it’s being developed on existing forensic technology used for monitoring online copyright violations. The fight against crypto money laundering remains a global concern. Luxembourg’s National Risk Assessment report warned in 2025 that exchanges continue to pose a significant risk due to large client bases, anonymous activity, and international operations. In Germany, authorities seized $38.2 million from eXch after it was accused of laundering funds linked to major crypto hacks like those targeting Bybit. Australia’s AUSTRAC has flagged crypto ATMs as a rising threat, warning providers of potential legal action if they fail to meet anti-money laundering standards. Over 1,600 machines now operate across the country, posing a convenient path for criminals to move illicit funds.