Security & Regulatory Compliance Flashcards
6 cards from real CBC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Security & Regulatory Compliance flashcards as text
What is the primary security feature of blockchain technology?
Answer: Decentralized structure with cryptographic security
Blockchain's decentralized structure eliminates a single point of failure, making it resistant to hacking and fraud.
Which regulatory body oversees cryptocurrency compliance in the United States?
Answer: Securities and Exchange Commission (SEC)
The SEC regulates securities and investment aspects of cryptocurrency, ensuring compliance with financial laws.
How does blockchain technology enhance data privacy?
Answer: By encrypting transaction data for security
Blockchain uses cryptographic encryption to secure transaction data, ensuring privacy and protection against tampering.
Which compliance measure helps prevent money laundering in cryptocurrency transactions?
Answer: Implementing Know Your Customer (KYC) procedures
Know Your Customer (KYC) procedures help verify user identities, preventing illegal activities like money laundering.
What is a common security risk in blockchain networks?
Answer: 51% attack allowing control over transaction validation
51% attacks occur when a single entity gains control of most of a blockchain's mining power, allowing fraudulent transaction validation.
Which regulation is critical for businesses using blockchain in financial transactions?
Answer: General Data Protection Regulation (GDPR)
The General Data Protection Regulation (GDPR) requires businesses to comply with strict data protection and privacy laws when handling customer data on blockchain.