The Hong Kong police introduced a new Web3 platform called “CyberDefender Metaverse” as part of their technological advancements. To mark this milestone, the police force organized an inaugural event titled “Exploring the Metaverse” within the virtual realm.

In an effort to enhance public awareness regarding the potential risks linked to Web3 and the metaverse, the Hong Kong police launched this metaverse platform. The platform primarily aims to educate individuals about the potential dangers that can arise within this digital realm. To foster discussions on crime prevention strategies within the metaverse, the event took place across three virtual venues.

The event was specifically organized on the newly launched platform and aimed to engage participants in proactive conversations about ensuring safety within this digital realm.

During the event, Chief Inspector Ip Cheuk-yu from the Cyber Security and Technology Crime Bureau (CSTCB) delivered a comprehensive presentation on the risks associated with Web3.

With utmost concern, he highlighted to the attendees that the metaverse presents potential dangers such as fraud, hacking, theft, and sexual offences. In addition to addressing the risks posed by the metaverse, the event placed a significant emphasis on the utilization of digital assets by modern cybercriminals.

Attendees were enlightened about the advancements made in combating crypto crime and the ongoing efforts to mitigate its impact. By delving into this aspect, the event provided valuable insights into the evolving landscape of cybercrime and the strides taken to curb illicit activities involving digital assets.

Ip Cheuk-yu stated:

All crimes in the cyberspace could also happen in the metaverse, such as investment frauds, unauthorized access to systems, theft and sexual offenses.

A Surge in Criminal Activities Evident Within the Metaverse

According to the Hong Kong police force, the city witnessed a staggering 2,336 virtual asset-related crimes in 2022 alone.

These incidents inflicted substantial financial losses of $1.7 billion upon the victims. The gravity of the situation becomes even more apparent as the first quarter of this year has already reported 663 cases of similar nature.

Alarmingly, the losses reported during this short period amounted to $570 million, showcasing a worrisome increase of 75 per cent when compared to the same period in 2022.

These statistics underscore the pressing need for proactive measures to address the rising trend of virtual asset-related crimes and protect individuals from significant financial harm.

Revised Anti-Money Laundering Regulations Released

This week, in conjunction with the introduction of the new metaverse platform, the Hong Kong Securities Regulatory Commission (HKSRC) released revised anti-money laundering (AML) guidelines.

The informative guide outlines the tactics employed by offenders to launder money through digital assets and offers comprehensive measures for financial institutions to shield themselves from illicit engagements.

These updated regulations will be applicable to all firms involved in virtual assets and entail heightened Know Your Customer (KYC) and due diligence obligations.