CCE Regulatory & Legal Framework 4

Question 1

Which Wyoming law, enacted in 2019, created a new type of bank charter specifically designed to serve cryptocurrency businesses?

Accepted Answer

Special Purpose Depository Institution (SPDI) Act

Answer

Wyoming's Special Purpose Depository Institution (SPDI) Act created a new bank charter allowing crypto-focused institutions to hold digital assets and provide financial services without FDIC insurance.

Question 2

Under the EU's Anti-Money Laundering Directive (AMLD5), which entities were first brought under AML obligations in 2020?

Accepted Answer

Cryptocurrency exchanges and custodian wallet providers

Answer

AMLD5 extended AML/CTF obligations to crypto-to-fiat exchanges and custodian wallet providers for the first time across EU member states.

Question 3

What is the significance of the SEC's 'Regulation D exemption' for many cryptocurrency token sales in the US?

Accepted Answer

It allows securities offerings to be sold to accredited investors without full SEC registration

Answer

Regulation D (particularly Rule 506(b) and 506(c)) allows token issuers to raise capital from accredited investors without registering the offering with the SEC, a common structure for SAFTs.

Question 4

Which US enforcement action established that unregistered ICO tokens sold to the public likely constitute unregistered securities offerings?

Accepted Answer

SEC v. Telegram Group (2020)

Answer

In SEC v. Telegram (2020), the court found that Telegram's $1.7 billion Gram token sale was an unregistered securities offering, and Telegram returned funds to investors.

Question 5

Under FATF standards, what risk-based approach element must VASPs apply when determining how to monitor customers?

Accepted Answer

Allocate compliance resources proportional to the assessed risk level of each customer

Answer

FATF's risk-based approach requires VASPs to perform enhanced due diligence on higher-risk customers and simplified due diligence on lower-risk customers, allocating resources proportionally.

(CCE) Certified Cryptocurrency Expert Practice Test

(CCE) Certified Cryptocurrency Expert Practice Test

CCE Regulatory & Legal Framework 4