Regulatory Compliance and Legal Frameworks in Blockchain BBLC Practice Questions (Page 11)

Questions 51–55

1. 51foundation · easy

   Which international body is primarily responsible for setting global standards for anti-money laundering and counter-terrorist financing that many national regulators incorporate into their blockchain-related regulations?

   • AInternational Organization for Standardization (ISO)
   • BInternational Monetary Fund (IMF)
   • CFinancial Action Task Force (FATF)
   • DWorld Trade Organization (WTO)
   Reveal Solution Discussion Select an answer first
2. 52expert · hard

   A crypto exchange wants to expand into a new jurisdiction that has strict AML/CTF regulations, including a requirement to verify the source of funds for large transactions. The exchange currently uses a risk-based approach and does not verify source of funds for any transactions. What is the most appropriate action?

   • ARefuse to operate in the new jurisdiction to avoid the requirement.
   • BImplement source-of-funds verification for transactions above the local threshold and adjust the risk-based approach accordingly.
   • CApply the same risk-based approach and hope the regulator does not enforce the requirement.
   • DVerify source of funds for all transactions globally to simplify compliance.
   Reveal Solution Discussion Select an answer first
4. 53application · medium

   A blockchain company is tracking regulatory developments in the U.S., where the SEC has increased enforcement actions against crypto projects. The company plans to launch a token that may be considered a security. Which action is most prudent?

   • AConduct a thorough legal analysis of the token under current securities laws and consider engaging with the SEC.
   • BRely on the token's utility features to avoid SEC jurisdiction.
   • CLaunch the token quickly before regulations become stricter.
   • DAvoid any contact with regulators to prevent drawing attention.
   Reveal Solution Discussion Select an answer first
5. 54foundation · easy

   Why is it important for blockchain business leaders to monitor emerging regulatory developments?

   • ATo avoid paying taxes on digital assets
   • BTo predict the exact price of cryptocurrencies
   • CTo anticipate changes that could affect their business model and ensure ongoing compliance
   • DTo ensure that their blockchain is not forked
   Reveal Solution Discussion Select an answer first
6. 55foundation · easy

   What is a key requirement for a smart contract to be legally enforceable as a contract under traditional contract law?

   • AThe contract must be executed on a private blockchain
   • BThe code must be written in a specific programming language
   • CThere must be an offer, acceptance, and consideration
   • DThe contract must be registered with a government agency
   Reveal Solution Discussion Select an answer first