For Bitrace, 2024 is also a year of leapfrogging. This year, we have deepened our presence in the Hong Kong market, helping local law enforcement agencies investigate currency-related crimes and assisting regulators in better understanding the crypto market; based on our understanding of the crypto crime ecosystem, we have investigated public security incidents and provided loss recovery services to hundreds of victims; we have further improved the regulatory, compliance, and investigation tool products and service support provided to customers based on AI and big data technologies to more accurately and efficiently identify and monitor risks and criminal activities on the chain.
Next, we will introduce you to these three keywords.
Hong Kong
In 2023, Hong Kong launched the world's leading Web3 industry policy, which aims to regulate the industry based on laws and regulations such as anti-money laundering (AML) and combating the financing of terrorism (CFT). This plan was also continued in 2024. Following the implementation of the VASP licensing system, legislative activities for stablecoins, payments and VAOTC began.
As a local regulatory technology company in Hong Kong, Bitrace has always maintained close cooperation with the Hong Kong government to provide assistance in areas such as law enforcement and supervision -
For law enforcement collaboration. Bitrace not only helped the Hong Kong Police Force investigate a number of large-scale and well-known cryptocurrency-related cases and recovered damaged assets for victims of related incidents, but also provided dozens of Crypto tracking and analysis trainings for law enforcement personnel to enhance the police force's on-chain analysis capabilities and better combat cryptocurrency-related crimes;
Regarding regulatory collaboration. Based on its understanding of current common cryptocurrency-related crime methods and the cryptocurrency money laundering industry, Bitrace provides leading regulatory tools and timely threat intelligence to regulatory authorities including the Hong Kong Customs, the Hong Kong Monetary Authority, and the Hong Kong Securities and Futures Commission, so as to better monitor and prevent criminal activities and identify related criminal funds.
As a result, Bitrace has gained wide recognition in the industry. This year, Bitrace was invited to participate in a number of large-scale fintech forum activities in Hong Kong, and was selected as Invest HK Fintech "Must-know" 2024 for its advanced experience and innovative solutions in the Regtech field.
Anti-fraud
This year, as the overall market value of the industry has expanded, fraud-related criminal activities have become more frequent. Bitrace has continued to provide services to industry users and institutions, and has achieved greater results -
Research on the cryptocurrency-related crime industry. Our engineers and investigators have sorted out and dismantled the current popular criminal methods and changing trends through real case investigations, open source network intelligence, and field research. The geographical scope covers Hong Kong, Southeast Asia, Mainland China, Taiwan, Japan, South Korea and other countries or regions. Our work has been widely recognized by our peers and customers. The United Nations also cited Bitrace's investigation results in two reports on the Southeast Asian crime ecosystem released that year;
Assistance for victims of fraud. Bitrace provided funds tracking and reporting guidance services to victims in more than 238 independent cases this year, with the direct amount involved exceeding US$150 million. In addition, Bitrace also actively participated in the investigation of public security incidents, including attacks on DMM, DEXX, BingX and other institutions, and promptly participated in tracking and intercepting funds. Based on this part of the work, we wrote a large number of incident reports and anti-fraud popular science articles, and released the "Web3 Anti-Fraud Manual" in the third quarter, which was widely praised.
Regulatory Technology
In 2023, we launched regulatory technology tools and services including DeTrust on-chain risk fund monitoring and management platform, BitracePro cryptocurrency multi-party collaborative analysis platform, address fund risk audit, business address monitoring, etc. This year, we have expanded the data scope, tools, and service capabilities on this basis -
For the data scope. Bitrace not only adds canvas analysis and address fund risk audit support for dozens of other mainstream Layer1 and layer2 public chains on the basis of the original Bitcoin, Ethereum, TRON chain, and Binance ecological chain. And also strengthens some categories of fund risk labels, including sanctions, CSAM, terrorist financing, etc. In addition, we also conducted research on the VAOTC industry and mainstream stablecoin market in Hong Kong, and produced a special data monitoring panel to help customers better understand the risk trends of the local industry;
For tools and service capabilities. Based on data capabilities and intelligence capabilities, Bitrace provides customized products and services to law enforcement and regulatory departments in Hong Kong to help them better perceive, identify, and block risk events occurring locally. It also provides personalized data packages and product components for several large Web3 entities to help them improve their existing platform risk control systems.
It is worth mentioning that the current updated versions of Detrust and BitracePro tools are in internal testing. We will provide more functions and services in the future, so stay tuned.
Finally
In the past year, Bitrace, like all those who love this industry, has witnessed the great leap forward of the Web3 industry with joy. In the new year, we will also forge ahead, live up to expectations, and bring more trust and compliance to the industry.
