🔴 CryptoTrace: Hong Kong launches tool for tracking crypto
— Hong Kong authorities have introduced CryptoTrace — a system for tracking crypto transactions, developed in collaboration with the University of Hong Kong 🕵️♂️
— Purpose: to assist the police in investigating crimes related to virtual assets
— The technology includes:
• blockchain analysis
• graph connections between wallets
• accelerated detection of fraud and money laundering
📚 In March, law enforcement was trained to use the tool. The focus is on investigating cybercrimes and AI designs, as in the case of arrests in 2024 (stolen $46 million via deepfakes).
⚖️ Context:
— In April, the SFC allowed licensed platforms in Hong Kong to offer staking, but under strict compliance with regulations
— Now, Web3 companies are actively cooperating with regulators: they want to create a "safe ecosystem"
📉 Impact on the market: moderately negative. Increased surveillance may scare anonymous participants and the DeFi segment, but brings recognition at the institutional level closer.
