CCE Regulatory & Legal Framework 2

Question 1

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

Accepted Answer

SEC

Answer

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.

Question 2

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

Accepted Answer

Crypto-asset service providers (CASPs)

Answer

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.

Question 3

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

Accepted Answer

Originator and beneficiary information for transfers above a threshold

Answer

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.

Question 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?

Accepted Answer

$10,000

Answer

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

Question 5

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

Accepted Answer

SEC v. Ripple Labs

Answer

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.

(CCE) Certified Cryptocurrency Expert Practice Test

(CCE) Certified Cryptocurrency Expert Practice Test

CCE Regulatory & Legal Framework 2