Blockchain Regulatory Compliance & Risk Management

Question 1

Why is KYC (Know Your Customer) important in blockchain applications?

Accepted Answer

To ensure compliance and prevent financial crimes

Answer

To accelerate blockchain speed

Answer

To improve mining efficiency

Answer

To decrease gas costs

Question 2

What is the role of GDPR in blockchain regulation?

Accepted Answer

It governs how personal data is handled

Answer

It promotes public mining pools

Answer

It defines transaction speeds

Answer

It sets global cryptocurrency prices

Question 3

Which of the following is a risk management practice in blockchain?

Accepted Answer

Auditing smart contracts

Answer

Increasing token volume

Answer

Publishing private keys

Answer

Storing data in plain text

Question 4

What is the purpose of a compliance framework in blockchain development?

Accepted Answer

To enforce data privacy and legal standards

Answer

To track gas usage

Answer

To ensure faster transactions

Answer

To reduce miner fees

Question 5

How can blockchain developers reduce the risk of regulatory non-compliance?

Accepted Answer

Consult legal experts

Answer

Ignore jurisdictional laws

Answer

Use anonymous developers

Answer

Keep code closed-source

Question 6

Why is risk assessment essential before launching a blockchain product?

Accepted Answer

To identify and mitigate vulnerabilities

Answer

To determine gas prices

Answer

To meet investor demand

Answer

To increase block size