CCI Cryptocurrency Exchange Investigations

Question 1

What does KYC stand for in the context of cryptocurrency exchanges?

Accepted Answer

Know Your Customer

Answer

Keep Your Credentials

Answer

Key Your Crypto

Answer

Know Your Currency

Question 2

Under FinCEN regulations, cryptocurrency exchanges operating in the US are classified as what type of business?

Accepted Answer

Money Services Business (MSB)

Answer

Bank Holding Company

Answer

Securities Dealer

Answer

Insurance Provider

Question 3

What is the 'travel rule' in cryptocurrency compliance?

Accepted Answer

A rule requiring VASPs to share originator and beneficiary information for transactions above $3,000

Answer

A regulation governing cross-border crypto shipments

Answer

A law requiring miners to register travel

Answer

A rule about moving crypto between personal wallets

Question 4

What is the primary legal tool used to compel a cryptocurrency exchange to provide user account data?

Accepted Answer

Subpoena

Answer

Arrest warrant

Answer

Civil summons

Answer

Administrative hold

Question 5

What is a 'chain hop' technique used by criminals on exchanges?

Accepted Answer

Rapidly converting funds through multiple cryptocurrencies to obscure the transaction trail

Answer

Moving funds between multiple bank accounts

Answer

Switching between different blockchain networks only once

Answer

Using VPNs to access geo-restricted exchanges

Question 6

What information in a cryptocurrency exchange's KYC records is most valuable to investigators?

Accepted Answer

Government-issued ID, selfie photo, residential address, and linked bank accounts

Answer

Only the user's email address

Answer

Trading strategy preferences and order history

Answer

Device serial numbers only