CCE Regulatory and Legal Frameworks 2

Question 1

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

Accepted Answer

FinCEN

Answer

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

Question 2

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

Accepted Answer

Markets in Crypto Assets

Answer

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

Question 3

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

Accepted Answer

CFTC

Answer

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

Question 4

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

Accepted Answer

To require crypto businesses to report suspicious activity and maintain records

Answer

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

Question 5

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

Accepted Answer

The Howey Test

Answer

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.

(CCE) Certified Cryptocurrency Expert Practice Test

(CCE) Certified Cryptocurrency Expert Practice Test

CCE Regulatory and Legal Frameworks 2