Practice Test Geeks(CCA) Certified Cryptocurrency Auditor Practice Test
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Regulatory Compliance & Reporting Flashcards

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  1. The IRS treats cryptocurrency as property for tax purposes. Which form is used to report capital gains and losses from crypto disposals?

    Answer: Form 8949

    Form 8949 is used to report sales and other dispositions of capital assets, including cryptocurrency, with the totals flowing to Schedule D.

  2. A VASP operating in multiple EU member states under MiCA can serve all EU customers via which regulatory concept?

    Answer: Passporting

    MiCA includes a passporting mechanism allowing a CASP authorized in one EU member state to provide services across all EU member states.

  3. Under U.S. sanctions law, which agency administers the OFAC Specially Designated Nationals (SDN) list relevant to crypto compliance?

    Answer: Department of the Treasury's OFAC

    The Office of Foreign Assets Control (OFAC), a division of the U.S. Treasury, administers the SDN list and enforces economic sanctions.

  4. Which AML control requires crypto exchanges to verify the identity of customers before allowing them to transact?

    Answer: Customer Due Diligence (CDD) / Know Your Customer (KYC)

    CDD/KYC programs require VASPs to identify and verify customers' identities before establishing a business relationship or allowing transactions.

  5. Under FATF standards, when should a VASP apply Enhanced Due Diligence (EDD)?

    Answer: When a customer is classified as higher risk, such as a PEP

    EDD must be applied when standard CDD is insufficient, including for politically exposed persons, high-risk countries, or unusual transaction patterns.

  6. A cryptocurrency auditor reviewing a DeFi protocol's compliance posture should be aware that FATF guidance suggests these protocols may trigger VASP obligations when:

    Answer: Owners/operators maintain control or influence over the protocol

    FATF's updated guidance states that DeFi protocols may be treated as VASPs if an owner or operator retains control or sufficient influence over the protocol.

  7. Which document produced during a crypto compliance audit summarizes identified risks, control gaps, and recommended remediation actions?

    Answer: Audit findings report / management letter

    An audit findings report (or management letter) documents deficiencies found during the audit and provides recommendations for management to address.