Practice Test Geeks(CCE) Certified Cryptocurrency Expert Practice Test
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Regulatory & Legal Framework Flashcards

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  1. Which US agency issued the 2019 guidance clarifying that certain digital assets are 'investment contracts' subject to securities laws?

    Answer: SEC

    The SEC issued its Framework for 'Investment Contract' Analysis of Digital Assets in April 2019 to help issuers determine if their tokens qualify as securities.

  2. Under the EU's MiCA regulation, which category of crypto-asset issuers must hold minimum own funds of at least €350,000?

    Answer: Crypto-asset service providers (CASPs)

    MiCA requires crypto-asset service providers to hold minimum own funds of €50,000 to €150,000 depending on service type, while ART issuers face higher thresholds—but CASPs face the €350K floor for certain classes.

  3. What does the FATF 'Travel Rule' require Virtual Asset Service Providers (VASPs) to transmit?

    Answer: Originator and beneficiary information for transfers above a threshold

    FATF Recommendation 16 (Travel Rule) requires VASPs to collect and transmit originator and beneficiary identifying information for virtual asset transfers of $1,000/€1,000 or above.

  4. In the US, the Bank Secrecy Act (BSA) requires money services businesses to file a Currency Transaction Report (CTR) for cash transactions exceeding what amount?

    Answer: $10,000

    The BSA mandates CTR filing for cash transactions exceeding $10,000 in a single day, and this threshold also applies to MSBs handling cryptocurrency.

  5. Which landmark US court case established that the anti-fraud provisions of federal securities laws can apply to digital token sales?

    Answer: SEC v. Ripple Labs

    SEC v. Ripple Labs (2020–ongoing) is the landmark case applying securities anti-fraud provisions to XRP token sales, though Howey established the underlying investment contract test.

  6. Which type of US regulatory framework governs a crypto exchange that only lists tokens deemed commodities, not securities?

    Answer: CFTC registration as a designated contract market or SEF

    Exchanges listing commodity tokens must register with the CFTC as a Designated Contract Market (DCM) or Swap Execution Facility (SEF) under the Commodity Exchange Act.

  7. What is the primary purpose of a 'safe harbor' proposal (like the one suggested by SEC Commissioner Hester Peirce) in the context of crypto token launches?

    Answer: To give token networks a grace period to achieve decentralization before securities rules apply

    Commissioner Peirce's Token Safe Harbor proposal would give blockchain projects a three-year grace period to decentralize their network before determining whether their tokens are securities.