Cryptocurrency Regulation and Compliance 2

Question 1

Under the Bank Secrecy Act (BSA), cryptocurrency exchanges operating in the US must register with which agency?

Accepted Answer

FinCEN

Answer

Crypto exchanges are classified as Money Services Businesses (MSBs) and must register with FinCEN under the BSA.

Question 2

What is the 'Travel Rule' in the context of cryptocurrency compliance?

Accepted Answer

A requirement to transmit sender/receiver information for transfers above $3,000

Answer

The Travel Rule requires VASPs to share originator and beneficiary information for transfers of $3,000 or more.

Question 3

Which US regulatory framework requires cryptocurrency exchanges to implement AML and KYC programs?

Accepted Answer

Bank Secrecy Act

Answer

The Bank Secrecy Act mandates AML programs and KYC requirements for crypto exchanges classified as MSBs.

Question 4

What does FATF stand for in cryptocurrency regulation?

Accepted Answer

Financial Action Task Force

Answer

The Financial Action Task Force (FATF) is an intergovernmental body that sets global AML and counter-terrorism financing standards.

Question 5

In the US, which type of cryptocurrency product is most clearly regulated as a commodity?

Accepted Answer

Bitcoin

Answer

Bitcoin is widely recognized by the CFTC as a commodity, giving the CFTC jurisdiction over Bitcoin derivatives markets.

Cryptocurrency Practice Test