CBP Security and Regulatory Issues 2

Question 1

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

Accepted Answer

Bank Secrecy Act (BSA)

Answer

Securities Act of 1933

Answer

Gramm-Leach-Bliley Act

Answer

Sarbanes-Oxley Act

Question 2

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

Accepted Answer

Creating multiple fake identities to gain disproportionate network influence

Answer

Stealing private keys through phishing

Answer

Flooding the network with spam transactions

Answer

Intercepting transactions between two peers

Question 3

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

Accepted Answer

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

Answer

Bitcoin miners who only mine and hold coins

Answer

Software developers who write Bitcoin wallets

Answer

Node operators who validate transactions

Question 4

What security risk does address reuse introduce in Bitcoin?

Accepted Answer

It links multiple transactions together, reducing privacy

Answer

It increases transaction fees

Answer

It reduces mining rewards

Answer

It prevents transactions from being confirmed

Question 5

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

Accepted Answer

Race attack

Answer

51% attack

Answer

Dust attack

Answer

Timejacking

Question 6

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

Accepted Answer

Cryptocurrency exchanges and custodian wallet providers

Answer

Only banks holding crypto assets

Answer

Only decentralized exchanges

Answer

Bitcoin node operators across the EU

Question 7

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

Accepted Answer

To store and protect private keys in tamper-resistant hardware

Answer

To speed up transaction signing

Answer

To validate blocks faster than software nodes

Answer

To encrypt blockchain data at rest