CBE Blockchain Governance and Regulatory Compliance

Question 1

Which US regulatory body primarily oversees cryptocurrency exchanges and classifies many tokens as securities?

Accepted Answer

SEC

Answer

The SEC (Securities and Exchange Commission) applies the Howey Test to determine if tokens are securities and regulates exchanges accordingly.

Question 2

What is the primary purpose of on-chain governance in a blockchain network?

Accepted Answer

To allow token holders to vote on protocol upgrades directly via the blockchain

Answer

On-chain governance lets token holders submit and vote on proposals—such as protocol upgrades—with results enforced automatically by the network.

Question 3

The Bank Secrecy Act (BSA) requires US crypto businesses to implement which compliance program?

Accepted Answer

AML/KYC

Answer

The BSA mandates Anti-Money Laundering (AML) and Know Your Customer (KYC) programs for money services businesses, including many crypto firms.

Question 4

Which governance model uses a foundation or small committee to make protocol decisions, rather than broad token holder voting?

Accepted Answer

Off-chain governance

Answer

Off-chain governance relies on informal processes—forums, foundations, or core teams—to reach consensus before implementing changes.

Question 5

What does FinCEN require of US-based cryptocurrency 'money services businesses' (MSBs)?

Accepted Answer

Registration with FinCEN and adherence to AML/CTF rules

Answer

FinCEN requires crypto MSBs to register, maintain AML programs, and file suspicious activity reports (SARs).

CBE - Certified Blockchain Expert Practice Test