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

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

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

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

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

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

Question 4

What security risk does address reuse introduce in Bitcoin?

Accepted Answer

It links multiple transactions together, reducing privacy

Answer

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

Question 5

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

Accepted Answer

Race attack

Answer

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

(CBP) Certified Bitcoin Professional Practice Test

(CBP) Certified Bitcoin Professional Practice Test

CBP Security and Regulatory Issues 2