Coinspeaker
Bitrace Empowers Hong Kong Police with On-Chain Crypto Funds Tracking Training
Bitrace, a blockchain data analysis company, has provided on-chain fund tracking training to officers of the Hong Kong Police Force. The training, done as part of the firm’s Corporate Social Responsibility is to help bolster law enforcement’s understanding of blockchain technology, particularly as Hong Kong continues its push as the new darling of the crypto economy.
According to a local media source, the training sessions were conducted for the Cyber Security and Technology Crime Bureau (CSTCB) and Commercial Crime Bureau (CCB).
Web3 Companies and Authorities Jointly Fight Crypto Crimes
With the increasing prominence of Hong Kong in the cryptocurrency space, Bitrace CEO Isabel says it is necessary to strengthen collaboration between Web3 companies and the authorities. She maintains that the training is targeted at equipping law enforcement officers with the necessary skills and knowledge to investigate cryptocurrency-related crimes effectively.
Isabel, while delivering a comprehensive overview of crypto-assets application in cybercrime, highlighted some challenges including the fact that regulatory agencies lag behind in understanding crypto-criminal methods. Many crypto crime fighters do not also know that encrypted crime investigation is usually multi-layered, and the low efficiency of collaboration among stakeholders.
The Bitrace CEO insisted that it is necessary to protect the security of users’ funds and foster a healthier and safer Web3 environment by strengthening partnerships with regulatory agencies. The capacity-building sessions delved into various aspects of crypto-related crimes such as online gambling, illicit asset trading, money laundering, and fraud. Last year, Anatoly Legkodymov, the former CEO of Bitzlato, pleaded guilty to facilitating the laundering of illicit funds totaling $700 million.
Using the BitracePro crypto asset tracking and analysis platform, Bitrace’s technical experts demonstrated how crypto funds are utilized and circulated in criminal activities. Real-life case studies were analyzed to provide insights into encryption crime methods and the flow of criminal funds on the blockchain.
Bitrace Capabilities Beyond Hong Kong Police Training
Besides the training, Bitrace also engaged in discussions with the Commercial Crimes Bureau and the Cyber Crime Bureau. The aim is to foster collaboration between regulatory agencies and Web3 companies.
Prior to the training, the regulatory authorities have tried to keep the space sane. For instance, last month, the Securities and Futures Commission (SFC) of Hong Kong had flagged suspected crypto fraud with HKCEXP to prevent users from falling victim to scams.
Analysts say Bitrace is well suited to provide capacity building for Hong Kong police as it has advanced analytics capabilities, machine learning, and pattern recognition algorithms and has enabled the accumulation of a vast address tag library. This library includes entity tags such as DeFi platforms, mining pools, and digital asset exchanges, as well as risk behavior tags like fraud, money laundering, and illegal online gambling.
Thus, by utilizing this technology, regulatory authorities can swiftly identify suspicious addresses and mitigate potential risks associated with crypto transactions. Industry watchers hope that the collaboration addresses the challenges posed by crypto-related crimes. This is paramount as the Hong Kong SFC is set to green light spot Bitcoin ETFs in the region anything from now.
Bitrace Empowers Hong Kong Police with On-Chain Crypto Funds Tracking Training
