Regulatory Compliance & Reporting Flashcards
7 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 7 Regulatory Compliance & Reporting flashcards as text
A crypto auditor is evaluating a stablecoin issuer. Which regulatory concern is most directly applicable to reserve attestation?
Answer: Whether reserve assets are sufficient and properly segregated to back outstanding tokens
Reserve attestation verifies that a stablecoin issuer holds sufficient, properly segregated assets to fully back all tokens in circulation.
Under U.S. law, which scenario would most likely cause an NFT to be classified as a security subject to SEC jurisdiction?
Answer: Buyers are led to expect profits from the issuer's managerial efforts
Under the Howey Test, an NFT is likely a security if buyers invest money in a common enterprise with a reasonable expectation of profits derived from others' efforts.
When a crypto compliance officer discovers a potential OFAC sanctions violation, the first action should be to:
Answer: Block the transaction and report to OFAC via the designated reporting mechanism
Upon identifying a potential OFAC violation, the correct response is to immediately block the transaction and self-report to OFAC, as voluntary disclosure can reduce penalties.
Which international standard-setting body issues guidance specifically on virtual assets and VASPs that national regulators are expected to implement?
Answer: FATF (Financial Action Task Force)
FATF issues binding Recommendations and interpretive guidance on virtual assets that its 39 member jurisdictions are required to implement through national law.
A crypto exchange operating globally must apply the Travel Rule. The threshold above which Travel Rule obligations are triggered under FATF guidance is:
Answer: $1,000 USD equivalent
FATF guidance sets the Travel Rule threshold at $1,000 USD (or equivalent) for virtual asset transfers between VASPs.
Which accounting method for cryptocurrency inventory, when prices are rising, generally results in the lowest reported capital gains?
Answer: Specific identification using highest-cost lots
Specific identification allows taxpayers to select the highest-cost lots first, maximizing cost basis and minimizing realized gains in a rising market.
Under the EU's 6th Anti-Money Laundering Directive (6AMLD), which change most directly affects crypto compliance programs?
Answer: Expanded list of predicate offenses and increased criminal liability for AML failures
6AMLD harmonized and expanded the list of predicate offenses to 22 categories and introduced criminal liability for legal persons, strengthening AML enforcement across the EU.