Regulatory Compliance & Reporting Flashcards
6 cards from real CCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Regulatory Compliance & Reporting flashcards as text
What is the primary goal of cryptocurrency regulation?
Answer: To ensure legal compliance and investor protection
The main goal is to protect investors, ensure market integrity, and prevent illicit activity like money laundering.
Which U.S. agency plays a key role in crypto regulation?
Answer: SEC
The SEC (Securities and Exchange Commission) oversees cryptocurrency offerings that qualify as securities.
What is a key component of AML compliance in crypto?
Answer: Know Your Customer (KYC)
Know Your Customer (KYC) procedures help verify user identity and detect suspicious transactions.
Why is transaction reporting important in cryptocurrency auditing?
Answer: To monitor and verify financial activity
It enables regulators and auditors to track financial flows, prevent fraud, and ensure compliance with tax laws.
Which regulation requires financial institutions to report large or suspicious transactions?
Answer: Bank Secrecy Act
The Bank Secrecy Act mandates reporting of suspicious activity and transactions over certain thresholds.
What is the role of regulatory audits in cryptocurrency firms?
Answer: To review compliance and internal processes
Audits ensure compliance with laws and regulations, and assess internal controls for risk and fraud prevention.