C4 Regulations, Compliance & Security

Question 1

What is the purpose of KYC regulations in cryptocurrency exchanges?

Accepted Answer

To verify user identity

Answer

To allow anonymous trading

Answer

To eliminate transaction fees

Answer

To track blockchain performance

Question 2

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

Accepted Answer

FATF

Answer

IMF

Answer

FBI

Answer

SEC

Question 3

What is one common method to secure a cryptocurrency wallet?

Accepted Answer

Two-factor authentication

Answer

Disabling updates

Answer

Using public Wi-Fi

Answer

Posting keys online

Question 4

Why is regulatory compliance important for crypto businesses?

Accepted Answer

To operate legally and gain trust

Answer

To avoid code audits

Answer

To ensure faster transactions

Answer

To attract hackers

Question 5

What does AML stand for in cryptocurrency compliance?

Accepted Answer

Anti-Money Laundering

Answer

Anonymous Market Ledger

Answer

Asset Management List

Answer

Automatic Mining License

Question 6

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

Accepted Answer

A hardware wallet stored offline

Answer

A wallet for daily transactions

Answer

An app that uses cloud sync

Answer

A third-party trading bot