CCE Regulatory & Legal Framework 5

Question 1

The Infrastructure Investment and Jobs Act (2021) expanded IRS 1099 broker reporting requirements to include which crypto entities?

Accepted Answer

Broadly defined 'brokers' potentially including node operators and software developers

Answer

The 2021 Infrastructure Act's crypto broker reporting provision used an overly broad definition of 'broker' that critics argued could include miners, validators, and software developers who don't have customer information.

Question 2

Under the proposed Digital Commodity Exchange Act (DCEA), which agency would gain primary jurisdiction over spot markets for digital commodities?

Accepted Answer

CFTC

Answer

The DCEA, proposed in various forms in Congress, would grant the CFTC primary jurisdiction over spot markets for digital commodities like Bitcoin and Ether.

Question 3

What does 'Suspicious Activity Report' (SAR) filing threshold ($5,000 for banks, $2,000 for MSBs) mean for crypto exchanges registered as MSBs?

Accepted Answer

They must file SARs when they know or suspect a transaction of $2,000+ involves illicit activity

Answer

MSBs (including crypto exchanges) must file SARs with FinCEN when they know, suspect, or have reason to suspect a transaction of $2,000 or more involves illicit funds or has no lawful purpose.

Question 4

Which international standard-setting body published the 'Prudential Treatment of Cryptoasset Exposures' requiring banks to apply a 1250% risk weight to Group 2 crypto assets?

Accepted Answer

Basel Committee on Banking Supervision (BCBS)

Answer

The Basel Committee on Banking Supervision finalized its standard in December 2022, applying a 1250% risk weight (effectively 100% capital requirement) to unbacked crypto assets like Bitcoin held by banks.

Question 5

In El Salvador, what legal tender status does Bitcoin hold following the 2021 Bitcoin Law?

Accepted Answer

Mandatory legal tender that all businesses must accept alongside the US dollar

Answer

El Salvador's Bitcoin Law made Bitcoin mandatory legal tender, requiring all economic agents to accept it as payment, alongside the US dollar which remains the official currency.

(CCE) Certified Cryptocurrency Expert Practice Test

(CCE) Certified Cryptocurrency Expert Practice Test

CCE Regulatory & Legal Framework 5