The Hong Kong police force has reported a substantial increase in crimes involving virtual assets, with the number of cases rising from 2,336 in 2022 to over 3,415 in 2023. This surge in virtual asset-related crimes has resulted in a total loss of HKD 4.3 billion, highlighting the growing threat posed by these types of offenses.

An analysis by the 'Technology Crime Advisory Group', established by the Hong Kong Police Force in December 2022, reveals that the majority of these cases fall into two categories. The first category involves fraudsters deceiving victims into transferring cryptocurrencies, known for their anonymity, into the fraudsters' virtual wallets. The second category involves fraudsters using virtual asset investments as a front to deceive victims.

The group believes that in addition to enhancing public awareness of virtual assets, it is crucial to ensure proper regulation of virtual asset platforms. This is essential to combat criminals who exploit cryptocurrencies for fraud or money laundering. The regulation of virtual asset platforms will help to prevent these types of crimes and protect investors from falling prey to fraudulent schemes.

In conclusion, the significant rise in virtual asset-related crimes in Hong Kong underscores the need for enhanced regulation and public awareness. The Hong Kong police force's efforts to combat these crimes will help to protect investors and ensure the integrity of the virtual asset market.