Hong Kong's Crypto AML
Compliance Experts
Ready to Strengthen Your Crypto Compliance?
Our Hong Kong team is here to guide you through all the regulatory hoops.
Contact Our TeamAML Solutions for Every Stage of Your Compliance Journey
✔︎ VASP Licensing
Meet SFC’s licensing requirements for virtual asset trading platforms and service providers.
✔︎ AMLO Compliance
Align with Hong Kong’s Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
✔︎ Travel Rule Compliance
Implement FATF Travel Rule solutions for virtual asset transfers.
✔︎ Transaction Monitoring & Investigations
Reviewing suspicious transactions, analyzing blockchain data, and investigate fund flows.
✔︎ Enhanced Due Diligence (EDD)
Conducting thorough background checks on high-risk clients, identifying potential red flags, and assessing regulatory exposure before engagement.
✔︎ Risk Assessments
Crafting tailored risk assessments aligned with industry best practices and client needs.
Our Team
Sphere State combines global leadership in risk management with deep expertise in Hong Kong’s regulatory landscape.
Björn Wahlström
CEO
Anders Bäckström
Partner and Chairman
Ilya Umanskiy
Partner and Director - Resilience Services
Hong Kong Expertise
- Former regulators and compliance officers from Hong Kong’s leading financial institutions.
- Seasoned AML and Anti-Financial Crime professionals, including Certified Fraud Examiners (CFEs), Certified Anti-Money Laundering Specialists (CAMS), with deep expertise in crypto.
- Deep understanding of Hong Kong’s regulatory landscape and business culture.
- Experienced working with leading financial institutions, fintech startups, virtual asset service providers (VASPs), and law firms navigating Hong Kong’s as well as the international compliance landscape.
Industry Impact
- Active members of Hong Kong’s crypto regulatory working groups.
- Regular speakers at industry conferences and regulatory forums.
- Contributors to Hong Kong’s crypto compliance standards development.
Why Choose Us
Over 10 years of expertise in AML compliance, KYC, due diligence, and risk assessment for crypto and fintech firms.
Large amount of transactions reviewed and analyzed for potential AML risks annually.
Proven track record in guiding clients through risk mitigation and fraud detection.
Local support team of seasoned AML and Anti-Financial Crime professionals
Success Stories
Case Study #1
Crypto Exchange Asset Tracing
Challenge:
A leading cryptocurrency exchange sought to recover misappropriated funds that had been moved through multiple wallets.
Solution:
We conducted advanced blockchain forensic analysis and transaction monitoring to trace the movement of stolen assets across multiple addresses and exchanges. We leveraged real world data from three different countries to identify the culprit behind exchange held accounts.
Result:
The firm successfully identified the flow of funds (worth over USD 742 million today) and advised on service of process via NFT airdrop to the digital wallets involved.
Case Study #2
Sanctions Advisory regarding crypto transactions
Challenge:
A fintech firm handling cross-border crypto transactions received inquiries from regulators about sanctions issues.
Solution:
We deployed blockchain forensic tools to trace the flow of funds, analyzing transactional histories and counterparties, conducted sanctions risk assessment, and provided a comprehensive compliance report proving the firm had no direct or indirect exposure to sanctioned entities.
Result:
The firm successfully demonstrated compliance to regulators, avoiding penalties and reputational damage.
Case Study #3
Crypto Advisory for Bank
Challenge:
A bank experiencing a technical glitch in its trading platform required an urgent review of its internal controls to assess potential compliance gaps, financial risks, and regulatory exposure. The bank needed an expert evaluation to ensure its AML and risk management measures remained intact despite the technical issue.
Solution:
We conducted a comprehensive internal control assessment in the bank's crypto trading system, including transaction monitoring, KYC procedures, and risk mitigation strategies, to ensure no regulatory breaches occurred during the glitch. We also provided tailored recommendations to enhance system resilience, fraud prevention, and internal oversight mechanisms.
Result:
We successfully ensured compliance with AML and risk management standards, minimizing regulatory concerns, and strengthened the bank's internal control framework, reducing the likelihood of future system failures impacting compliance.