CCI Cryptocurrency Exchange Investigations

Question 1

What does KYC stand for in the context of cryptocurrency exchanges?

Accepted Answer

Know Your Customer

Answer

KYC stands for Know Your Customer, the identity verification process exchanges must perform on users.

Question 2

Under FinCEN regulations, cryptocurrency exchanges operating in the US are classified as what type of business?

Accepted Answer

Money Services Business (MSB)

Answer

FinCEN classifies US cryptocurrency exchanges as Money Services Businesses (MSBs), requiring BSA registration and compliance.

Question 3

What is the 'travel rule' in cryptocurrency compliance?

Accepted Answer

A rule requiring VASPs to share originator and beneficiary information for transactions above $3,000

Answer

The travel rule requires VASPs to share originator and beneficiary information with counterpart institutions for transactions exceeding $3,000.

Question 4

What is the primary legal tool used to compel a cryptocurrency exchange to provide user account data?

Accepted Answer

Subpoena

Answer

A subpoena is the primary legal instrument used to compel cryptocurrency exchanges to disclose user account records and transaction history.

Question 5

What is a 'chain hop' technique used by criminals on exchanges?

Accepted Answer

Rapidly converting funds through multiple cryptocurrencies to obscure the transaction trail

Answer

Chain hopping involves converting funds through multiple cryptocurrencies in rapid succession to break the tracing trail and complicate forensic analysis.

CCI - Certified Cryptocurrency Investigator Practice Test

CCI - Certified Cryptocurrency Investigator Practice Test

CCI Cryptocurrency Exchange Investigations