Which of the following is an example of a mitigation strategy for regulatory risk in blockchain fintech?

Hiring more software developers

Increasing the block size of the blockchain

Using a more energy-efficient consensus algorithm

Implementing a compliance monitoring program

A blockchain fintech company is preparing for a regulatory audit. The board of directors wants to ensure that compliance is effectively overseen. Which governance structure is most appropriate to establish?

A compliance committee composed of the CEO, CFO, and head of engineering.

A compliance officer who reports to the head of product development.

A dedicated compliance committee that reports directly to the board and includes independent members.

An external legal firm that handles all compliance matters without internal involvement.

A blockchain-based supply chain platform operates in multiple countries. The platform stores personal data of users in several jurisdictions. A data subject in the EU requests deletion of their data. The platform's compliance team is evaluating the request. What is the most important consideration?

The platform can ignore the request because blockchain data is immutable.

The platform must assess whether the data is subject to GDPR and whether any legal retention obligations apply.

The platform must delete the data from all nodes immediately, regardless of other legal obligations.

The platform must only delete the data from nodes located in the EU.

Which legal challenge is most closely related to the question of whether a self-executing code on a blockchain can be held as a binding agreement in a court of law?

Liability for decentralized systems

Cross-border data transfer restrictions

In risk management for compliance, what is the primary purpose of assessing regulatory risk?

To ensure the blockchain network has no downtime

To identify the likelihood and impact of regulatory changes or non-compliance

To eliminate all legal risks permanently

To maximize the number of tokens issued

EC-CouncilBlockchain Fintech Certification

Domain 8Objective 2

Compliance, Regulatory Standards, and Legal Challenges BFC Practice Questions (Page 9)

Part of the Governance, Compliance, and Risk Management domain, which makes up ~12% of our current practice bank.

46questions here

10free pages

6concepts

Questions 41–45

41foundation · easy
Which of the following is an example of a mitigation strategy for regulatory risk in blockchain fintech?
Select an answer first
42application · medium
A blockchain fintech company is preparing for a regulatory audit. The board of directors wants to ensure that compliance is effectively overseen. Which governance structure is most appropriate to establish?
Select an answer first
43application · medium
A blockchain-based supply chain platform operates in multiple countries. The platform stores personal data of users in several jurisdictions. A data subject in the EU requests deletion of their data. The platform's compliance team is evaluating the request. What is the most important consideration?
Select an answer first
44foundation · easy
Which legal challenge is most closely related to the question of whether a self-executing code on a blockchain can be held as a binding agreement in a court of law?
Select an answer first
45foundation · easy
In risk management for compliance, what is the primary purpose of assessing regulatory risk?
Select an answer first

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