A company is launching a utility token for a decentralized application (dApp). The token is not a security, but the company still wants to comply with anti-money laundering (AML) regulations by ensuring that users cannot transfer tokens to addresses that have not completed identity verification. What is the best way to enforce this?

Use a decentralized exchange that does not require KYC

Implement a transfer restriction that only allows transfers to addresses that have been whitelisted after KYC verification

Make the token non-transferable

Use a public blockchain and rely on users to self-report their identity

A company is issuing a token that represents a security. The regulator requires that the company be able to freeze the tokens of a specific investor in case of a legal order. The token contract is an ERC-20 with a transfer function. What is the best way to implement the freeze capability?

Add a mapping that marks addresses as frozen and check it in the transfer function

Use a global pause function that stops all transfers

Transfer the investor's tokens to the company's wallet

Burn the tokens of the investor

Which of the following is an example of a fungible token?

A cryptocurrency like Ether (ETH)

A digital art piece tokenized as an NFT

A concert ticket with a unique seat number

A token representing a specific piece of real estate

EC-CouncilBlockchain Developer Certification

Domain 4Objective 3

Tokenization BDC Practice Questions (Page 3)

Part of the Cryptomining, Tokenization, and Digital Assets domain, which makes up ~10% of our current practice bank.

32questions here

7free pages

5concepts

Questions 11–15

11foundation · easy
Which of the following is the correct sequence of steps in the token lifecycle?
Select an answer first
12application · easy
An art gallery wants to sell digital artwork as unique collectibles on a blockchain. Each piece is one-of-a-kind and must be distinguishable from others. Which token standard should the gallery use?
Select an answer first
13application · medium
A company is launching a utility token for a decentralized application (dApp). The token is not a security, but the company still wants to comply with anti-money laundering (AML) regulations by ensuring that users cannot transfer tokens to addresses that have not completed identity verification. What is the best way to enforce this?
Select an answer first
14expert · hard
A company is issuing a token that represents a security. The regulator requires that the company be able to freeze the tokens of a specific investor in case of a legal order. The token contract is an ERC-20 with a transfer function. What is the best way to implement the freeze capability?
Select an answer first
15foundation · easy
Which of the following is an example of a fungible token?
Select an answer first

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Tokenization BDC Practice Questions (Page 3)

Questions 11–15

Which of the following is the correct sequence of steps in the token lifecycle?

An art gallery wants to sell digital artwork as unique collectibles on a blockchain. Each piece is one-of-a-kind and must be distinguishable from others. Which token standard should the gallery use?

A company is issuing a token that represents a security. The regulator requires that the company be able to freeze the tokens of a specific investor in case of a legal order. The token contract is an ERC-20 with a transfer function. What is the best way to implement the freeze capability?

Which of the following is an example of a fungible token?

Keep studying — Cryptomining, Tokenization, and Digital Assets