Editorial | Hong Kong must not pay for virtual money crime
- The breaking up of a massive money-laundering syndicate by Hong Kong customs shows cryptocurrency crooks are on the rise and authorities should always be alert
Cryptocurrencies have many theoretical advantages over fiat money. They do have, however, many real and practical benefits for speculators, criminal gangs, ransomware hackers and money launderers.
In the first case of its kind, Hong Kong customs has shut a local money-laundering syndicate that processed more than HK$1.2 billion (US$155 million) in illegal funds using a cryptocurrency.
Given the overseas prevalence of criminals using such methods to launder money and make all sorts of illegal transactions, a global financial hub such as Hong Kong would not have been so lucky as to escape this trend.
In the Hong Kong case, much of the laundered money ended up in Singapore, which is assisting local investigators. The suspected ringleader and members of the syndicate have been arrested.
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Is cryptocurrency too risky for China?
The technical sophistication and huge amount of money involved means local authorities must treat this case as a wake-up call, especially considering the ease with which currencies can be transferred in and out of the city.
