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CBCP Blockchain Governance and Regulation Flashcards

6 cards from real CBCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. What does KYC (Know Your Customer) compliance require blockchain businesses to collect?

    Answer: Verified identity information such as government-issued ID

    KYC compliance requires blockchain businesses to collect and verify users' identity information, such as government-issued ID and proof of address, to prevent fraud and illicit activity.

  2. Which US regulatory framework requires financial institutions, including some crypto businesses, to file Suspicious Activity Reports (SARs)?

    Answer: Bank Secrecy Act (BSA)

    The Bank Secrecy Act (BSA) requires financial institutions and qualifying crypto businesses to file SARs with FinCEN when suspicious transactions are detected.

  3. What is a 'regulatory sandbox' in the context of blockchain innovation?

    Answer: A controlled environment where startups can test products with relaxed regulations

    A regulatory sandbox allows blockchain startups to test innovative products and services under a controlled regulatory environment with temporary exemptions from certain rules.

  4. Under US FinCEN guidance, a business that transmits value using cryptocurrency is classified as a:

    Answer: Money Services Business (MSB)

    FinCEN classifies cryptocurrency businesses that transmit value as Money Services Businesses (MSBs), requiring them to register and comply with AML/BSA rules.

  5. Which international body sets global AML and counter-terrorism financing (CTF) standards that many countries apply to crypto?

    Answer: FATF (Financial Action Task Force)

    The Financial Action Task Force (FATF) sets global AML and CTF standards, including the 'Travel Rule' that many countries have adopted for cryptocurrency service providers.

  6. What does the FATF 'Travel Rule' require of Virtual Asset Service Providers (VASPs)?

    Answer: To share sender and recipient information for transactions above a threshold

    The FATF Travel Rule requires VASPs to collect and transmit originator and beneficiary information for cryptocurrency transactions above a specified threshold (typically $1,000).