Practice Test Geeks(CCE) Certified Cryptocurrency Expert Practice Test
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Regulatory and Legal Frameworks Flashcards

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  1. Which US agency primarily regulates cryptocurrency exchanges as money services businesses?

    Answer: FinCEN

    FinCEN (Financial Crimes Enforcement Network) requires cryptocurrency exchanges to register as money services businesses and comply with AML/BSA requirements.

  2. Under the EU's MiCA regulation, what does 'MiCA' stand for?

    Answer: Markets in Crypto Assets

    MiCA stands for Markets in Crypto Assets, the EU's comprehensive regulatory framework for crypto-assets that came into force in 2023.

  3. A US cryptocurrency exchange that allows trading of crypto futures contracts must primarily register with which regulator?

    Answer: CFTC

    The CFTC (Commodity Futures Trading Commission) has jurisdiction over cryptocurrency derivatives including futures contracts.

  4. What is the primary purpose of the Bank Secrecy Act (BSA) as applied to cryptocurrency businesses?

    Answer: To require crypto businesses to report suspicious activity and maintain records

    The BSA requires cryptocurrency businesses to implement AML programs, file SARs, and maintain transaction records to combat financial crimes.

  5. Which legal doctrine did the SEC use to classify many ICO tokens as securities?

    Answer: The Howey Test

    The Howey Test (from SEC v. W.J. Howey Co.) determines if an asset is an investment contract/security based on investment of money in a common enterprise with profit expectation from others' efforts.

  6. What is a 'Travel Rule' in the context of cryptocurrency regulation?

    Answer: Requirements for VASPs to share sender/receiver information on transfers above a threshold

    The Travel Rule (FATF Recommendation 16) requires Virtual Asset Service Providers to collect and transmit customer information for transfers above a specified threshold.

  7. In the US, which state first enacted a comprehensive 'BitLicense' framework for cryptocurrency businesses?

    Answer: New York

    New York was the first state to create a specific cryptocurrency business license (BitLicense) through the NY Department of Financial Services in 2015.

Regulatory and Legal Frameworks Flashcards — CCE Study Cards with Answers