Practice Test Geeks(CBP) Certified Bitcoin Professional Practice Test
← All CBP Flashcard Decks

Security and Regulatory Issues Flashcards

7 cards from real CBP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Security and Regulatory Issues flashcards as text

  1. Which U.S. regulatory framework requires cryptocurrency exchanges to implement AML programs?

    Answer: Bank Secrecy Act (BSA)

    The Bank Secrecy Act requires crypto exchanges classified as Money Services Businesses to maintain AML programs including KYC and suspicious activity reporting.

  2. What is a Sybil attack in the context of Bitcoin networks?

    Answer: Creating multiple fake identities to gain disproportionate network influence

    A Sybil attack involves one entity creating many fake node identities to manipulate the network's peer-to-peer operations or information propagation.

  3. Under FinCEN guidance, which entity type is typically classified as a Money Services Business (MSB)?

    Answer: Peer-to-peer exchangers who buy and sell Bitcoin for others

    FinCEN classifies those who exchange virtual currency for others as MSBs, requiring registration and AML compliance, while miners and developers are generally excluded.

  4. What security risk does address reuse introduce in Bitcoin?

    Answer: It links multiple transactions together, reducing privacy

    Reusing Bitcoin addresses allows blockchain analysts to cluster transactions and associate them with a single owner, undermining transaction privacy.

  5. Which attack vector exploits the time between transaction broadcast and block confirmation?

    Answer: Race attack

    A race attack broadcasts two conflicting transactions simultaneously, attempting to spend coins at a merchant before the legitimate transaction is confirmed.

  6. The EU's 5th Anti-Money Laundering Directive (5AMLD) extended AML requirements to which entities?

    Answer: Cryptocurrency exchanges and custodian wallet providers

    5AMLD explicitly brought cryptocurrency exchanges and custodian wallet providers under EU AML/KYC obligations for the first time.

  7. What is the primary purpose of a hardware security module (HSM) in Bitcoin custody?

    Answer: To store and protect private keys in tamper-resistant hardware

    HSMs provide a secure, tamper-resistant environment for private key storage and cryptographic operations, preventing key extraction even if the host system is compromised.