CBCP CBCP Blockchain Governance and Regulation 2

Question 1

What does KYC (Know Your Customer) compliance require blockchain businesses to collect?

Accepted Answer

Verified identity information such as government-issued ID

Answer

KYC compliance requires blockchain businesses to collect and verify users' identity information, such as government-issued ID and proof of address, to prevent fraud and illicit activity.

Question 2

Which US regulatory framework requires financial institutions, including some crypto businesses, to file Suspicious Activity Reports (SARs)?

Accepted Answer

Bank Secrecy Act (BSA)

Answer

The Bank Secrecy Act (BSA) requires financial institutions and qualifying crypto businesses to file SARs with FinCEN when suspicious transactions are detected.

Question 3

What is a 'regulatory sandbox' in the context of blockchain innovation?

Accepted Answer

A controlled environment where startups can test products with relaxed regulations

Answer

A regulatory sandbox allows blockchain startups to test innovative products and services under a controlled regulatory environment with temporary exemptions from certain rules.

Question 4

Under US FinCEN guidance, a business that transmits value using cryptocurrency is classified as a:

Accepted Answer

Money Services Business (MSB)

Answer

FinCEN classifies cryptocurrency businesses that transmit value as Money Services Businesses (MSBs), requiring them to register and comply with AML/BSA rules.

Question 5

Which international body sets global AML and counter-terrorism financing (CTF) standards that many countries apply to crypto?

Accepted Answer

FATF (Financial Action Task Force)

Answer

The Financial Action Task Force (FATF) sets global AML and CTF standards, including the 'Travel Rule' that many countries have adopted for cryptocurrency service providers.

CBCP - Certified Blockchain Professional Practice Test

CBCP - Certified Blockchain Professional Practice Test

CBCP CBCP Blockchain Governance and Regulation 2