Practice Test Geeks(C4) CryptoCurrency Certification Consortium Practice Test
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Regulations, Compliance & Security Flashcards

6 cards from real C4 practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Regulations, Compliance & Security flashcards as text

  1. What is the purpose of KYC regulations in cryptocurrency exchanges?

    Answer: To verify user identity

    KYC (Know Your Customer) rules help prevent money laundering and identity fraud by requiring users to verify their identity.

  2. Which global organization develops standards to combat money laundering in crypto?

    Answer: FATF

    The Financial Action Task Force (FATF) issues guidelines to help countries combat money laundering and terrorist financing involving cryptocurrencies.

  3. What is one common method to secure a cryptocurrency wallet?

    Answer: Two-factor authentication

    Using two-factor authentication adds an extra layer of protection beyond passwords, enhancing wallet security.

  4. Why is regulatory compliance important for crypto businesses?

    Answer: To operate legally and gain trust

    Compliance helps ensure operations are legal and transparent, reducing the risk of penalties and building user trust.

  5. What does AML stand for in cryptocurrency compliance?

    Answer: Anti-Money Laundering

    AML (Anti-Money Laundering) refers to laws and procedures designed to stop criminals from disguising illegally obtained funds as legitimate income.

  6. What is a 'cold wallet' in terms of crypto security?

    Answer: A hardware wallet stored offline

    A cold wallet is stored offline, making it less vulnerable to hacking and ideal for securing large amounts of cryptocurrency.

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Sources & references

Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy

  1. cryptoconsortium.org — Renewal, retake fee, retake policy, score release, eligibility, exam format, passing score, test dates, time limit, score validity · verified Oct 2026