CCA Regulatory Compliance & Reporting 3

Question 1

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

Accepted Answer

Form 8949

Answer

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

Question 2

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

Accepted Answer

Passporting

Answer

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

Question 3

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

Accepted Answer

Department of the Treasury's OFAC

Answer

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

Question 4

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

Accepted Answer

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

Answer

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

Question 5

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

Accepted Answer

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

Answer

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

(CCA) Certified Cryptocurrency Auditor Practice Test

(CCA) Certified Cryptocurrency Auditor Practice Test

CCA Regulatory Compliance & Reporting 3