Compliance, Regulatory Standards, and Legal Challenges BFC Practice Questions (Page 8)

Questions 36–40

1. 36foundation · easy

   Which governance structure is typically responsible for overseeing the overall compliance program within an organization?

   • ABoard of directors
   • BMarketing department
   • CSoftware development team
   • DBlockchain miners
   Reveal Solution Discussion Select an answer first
2. 37foundation · easy

   What is a primary reason why cross-border compliance is complex for blockchain fintech companies?

   • ARegulatory regimes differ significantly between countries
   • BBlockchain technology is not yet widely adopted
   • CAll countries have identical data protection laws
   • DThere is a single global regulatory body for blockchain
   Reveal Solution Discussion Select an answer first
4. 38foundation · easy

   Which regulatory standard is most likely to apply to a blockchain-based token that is offered to the public as an investment contract?

   • AGeneral Data Protection Regulation (GDPR)
   • BSecurities laws
   • CPayment Services Directive 2 (PSD2)
   • DBasel III
   Reveal Solution Discussion Select an answer first
5. 39application · medium

   A blockchain-based payment service provider (PSP) is expanding into the European Economic Area (EEA). The PSP will hold customer funds and execute payment transactions. Which regulatory framework is most directly applicable to its operations?

   • AThe Markets in Crypto-Assets Regulation (MiCA) because the PSP uses blockchain technology.
   • BThe Anti-Money Laundering Directive (AMLD) because the PSP must conduct KYC.
   • CThe General Data Protection Regulation (GDPR) because the PSP processes personal data.
   • DThe Payment Services Directive 2 (PSD2) because it governs payment services and e-money issuance.
   Reveal Solution Discussion Select an answer first
6. 40application · medium

   A cryptocurrency exchange is assessing its regulatory risk across multiple jurisdictions. The compliance team has identified that new regulations in one country may require the exchange to register as a money services business (MSB). What is the most appropriate first step in managing this regulatory risk?

   • AApply for an MSB license in all jurisdictions to ensure compliance everywhere.
   • BConduct a detailed impact assessment to understand the new requirements and the exchange's current compliance gaps.
   • CWait for the regulator to provide guidance before taking any action.
   • DImmediately cease operations in that country to avoid any potential violation.
   Reveal Solution Discussion Select an answer first