Hong Kong Police introduced a new Web3 platform Called the “CyberDefender Metaverse” as part of their technological advancement. To celebrate this achievement, the police force organized an inaugural event, “Exploring the Metaverse” within the virtual world.
In an effort to promote public awareness regarding the potential dangers associated with Web3 and the metaverse, the Hong Kong Police has launched this metaverse platform. The platform primarily aims to educate individuals about the potential risks that can arise in this digital realm. To promote discussions about crime prevention strategies within the metaverse, the event was held across three virtual venues.
The event was specifically organized on the newly launched platform with the aim of engaging participants in proactive conversations about ensuring safety in this digital domain.
During the event, Chief Inspector Ip Cheuk-yu of the Cybersecurity and Technology Crime Bureau (CSTCB) gave a comprehensive presentation on the risks associated with Web3.
With deep concern, he explained to the audience that the metaverse presents potential dangers such as fraud, hacking, theft, and sexual crimes. In addition to addressing the risks posed by the metaverse, the event focused heavily on the use of digital assets by modern cybercriminals.
Attendees were briefed on the advances made in combating cryptocrime and the ongoing efforts to mitigate its impact. Delving into this aspect, the event provided valuable insights into the evolving cybercrime landscape and the steps taken to curb illegal activities involving digital assets.
Ip Cheuk-yu stated:
All crimes in cyberspace can also occur in the metaverse, such as investment fraud, unauthorized access to systems, theft, and sexual crimes.
An escalation in criminal activities is evident within the Metaverse
According to the Hong Kong Police Force, the city witnessed 2,336 virtual asset-related crimes in 2022 alone.
These accidents caused huge financial losses amounting to 1.7 billion dollars for the victims. The seriousness of the situation is becoming more apparent as the first quarter of this year has already reported 663 cases of a similar nature.
Worryingly, the reported losses during this short period amounted to $570 million, which indicates an alarming 75 percent increase compared to the same period in 2022.
These statistics underscore the urgent need to take proactive measures to address the growing trend of crimes related to virtual assets and protect individuals from significant financial harms.
Issuance of amended anti-money laundering regulations
This week, coinciding with the introduction of the new metaverse platform, the Hong Kong Securities Regulatory Authority (HKSRC) issued revised anti-money laundering (AML) guidelines.
The informative guide outlines the tactics used by perpetrators to launder money through digital assets and provides comprehensive measures for financial institutions to protect themselves from illicit associations.
These updated regulations will apply to all companies participating in virtual assets and entail increased Know Your Customer (KYC) and due diligence obligations.
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