Hong Kong Customs is partnering with the University of Hong Kong to develop a new tool for tracing cryptocurrency transactions, aiming to combat rising virtual asset-related money laundering activity.

The partnership comes as authorities reveal seven suspected cases totaling more than HK$9 billion (US$1.1 billion) in recent years, according to South China Morning Post reporting. 

Mario Wong Ho-yin, Assistant Commissioner for Intelligence and Investigation at the Customs and Excise Department, said Thursday that the effort is part of a broader strategy to enhance cooperation with academia, the financial sector, and international law enforcement.

Among 39 locally reported money laundering cases between 2021 and May…