Under the project, engineers and researchers from HKU will collaborate with Hong Kong Customs to design tools capable of mapping and monitoring the movement of digital assets across blockchain networks.
The tool aims to help law enforcement identify suspicious patterns tied to money laundering and other illicit financial activities.
Professor David Srolovitz, HKU’s Dean of Engineering, echoed this and highlighted the importance of combining technical innovation with regulatory enforcement. He said that by bringing together experts from different fields, Hong Kong can better address the complex challenges of financial crime in the digital era.
Hong Kong’s push to strengthen crypto oversight comes amid broader global concerns. The borderless nature of digital assets makes them an attractive tool for criminals seeking to move funds discreetly.
These groups have established close links with global organised crime syndicates, including Mexican drug cartels. Their services allow wealthy Chinese individuals to bypass domestic capital controls and enable foreign criminals to move or repatriate illicit funds.
While jurisdictions such as the United States already use advanced tools to monitor crypto-related crime, Hong Kong’s upcoming system could encourage other countries in the region to adopt similar approaches.
