ChainCatcher news, the Hong Kong Customs held the 34th World Customs Organization Asia-Pacific Regional Contact Meeting. The Customs Commissioner, He Peishan, stated that the Asia-Pacific members have once again established the regional development strategy for the next two years. Participants jointly explored the innovative concept of using blockchain technology to establish a certification platform to promote regional development, and the meeting conducted in-depth discussions on reviewing regional policies.

ChainCatcher news, Hong Kong is currently exploring whether to involve the Securities and Futures Commission (SFC) and the Hong Kong Customs and Excise Department (C&ED) in regulating over-the-counter (OTC) services for virtual assets.According to informed sources, the Hong Kong Securities and Futures Commission has sought industry opinions on possibly implementing a new licensing system for cryptocurrency OTC services, which would allow the securities regulator to collaborate with C&ED to oversee these companies, as the discussions are private. According to a proposal made public in February, the planned OTC regulations and licenses were previously the sole domain of C&ED. OTC services facilitate direct and private large-scale cryptocurrency transactions between parties.Informed sources also indicated that in recent months, the Hong Kong SFC has consulted companies about introducing a new licensing system for cryptocurrency custody services. They stated that discussions regarding these two licenses are still in the early stages and may change.

ChainCatcher news, Hong Kong Customs has dismantled a money laundering group, arresting 4 individuals who are suspected of using multiple shell companies to receive a large amount of overseas cross-border remittances and laundering 1.5 billion HKD in dirty money through virtual currency transactions. All individuals are currently out on bail pending investigation, and approximately 2.2 million in assets across several of their bank accounts have been frozen.Pan Yeqin, the investigation officer of the Organized Crime and Triad Bureau, stated that the 4 arrested individuals include a family of 3 and a local man, among whom an Asian father and son duo are the masterminds of the group. The investigation indicates that from 2020 to 2022, they received large amounts of unexplained funds from overseas, some of which are linked to foreign criminal activities. The two established multiple shell companies in Hong Kong, transferring the large sums obtained over the two years to more than 30 accounts across 7 banks, with the largest single transfer amounting to 23 million HKD. Pan Yeqin mentioned that the group would then split the transactions, transferring smaller amounts to 180 third-party accounts, and recruited another 31-year-old local man, who was also arrested, with a monthly remuneration of 70,000 HKD to handle 300 million HKD in dirty money through virtual currency.

ChainCatcher news, Hong Kong Customs reported the successful investigation of a major money laundering case involving an amount as high as 1.8 billion HKD. Preliminary investigations revealed that a criminal group consisting of 3 members processed over 1,000 suspicious transactions between June 2021 and July 2022 by setting up multiple shell companies and bank accounts, including a large amount of suspicious fund transfers from virtual currency trading platforms. This indicates that criminals are attempting to launder illegal proceeds by exploiting the anonymity of virtual currencies. Currently, Customs has arrested 3 key members of the criminal group, sealed the involved companies, and confiscated a large number of criminal tools, including mobile phones, company seals, and bank cards. The case is still under further investigation, and more suspects may be arrested. This case serves as a warning, reminding the virtual currency industry to remain vigilant and strictly adhere to anti-money laundering regulations.

ChainCatcher news, according to the Hong Kong Economic Journal, the Hong Kong Legislative Council's Security Affairs Committee discussed the latest developments regarding customs participation in international activities yesterday, mentioning the JPEX case and issues related to virtual currency regulation. Hong Kong's Deputy Secretary for Security, Choi Hau-yeh, stated that the current laws empower customs mainly to monitor money exchange shops, and since virtual currency is not considered legal tender, customs has no authority to regulate it; regarding how virtual currency and virtual assets will be regulated in the future, the government and relevant regulatory bodies are continuously reviewing the situation and working to improve the regulatory framework.