CCA Regulatory Compliance & Reporting 2

Question 1

Under FinCEN's 2019 guidance, which activity requires a cryptocurrency exchange to register as a Money Services Business (MSB)?

Accepted Answer

Exchanging virtual currency for fiat on behalf of customers

Answer

FinCEN requires entities that exchange virtual currency for real currency, funds, or other virtual currency on behalf of others to register as MSBs.

Question 2

Which threshold triggers an automatic Currency Transaction Report (CTR) filing requirement under U.S. BSA rules?

Accepted Answer

$10,000 in cash transactions within a business day

Answer

The BSA requires filing a CTR for cash transactions exceeding $10,000 in a single business day by or for any person.

Question 3

The FATF 'Travel Rule' for virtual assets requires VASPs to transmit which information alongside transfers?

Accepted Answer

Originator and beneficiary identifying information

Answer

FATF Recommendation 16 requires VASPs to collect, verify, and transmit originator and beneficiary information with virtual asset transfers.

Question 4

A cryptocurrency auditor discovers a client is structuring transactions to avoid CTR thresholds. This activity is known as:

Accepted Answer

Structuring (smurfing)

Answer

Structuring, also called smurfing, is the illegal practice of breaking up transactions specifically to evade BSA reporting thresholds.

Question 5

Under the EU's MiCA (Markets in Crypto-Assets) regulation, which entity type is required to obtain authorization before operating?

Accepted Answer

Crypto-Asset Service Providers (CASPs)

Answer

MiCA requires Crypto-Asset Service Providers to obtain authorization from a competent national authority before providing services in the EU.

(CCA) Certified Cryptocurrency Auditor Practice Test