Which is the most important consideration when assessing compromise risks when creating a decentralized finance protocol or smart contract?

1. A. Security token standard
2. B. Dual authentication protocols
3. C. Government regulation
4. D. Code uniqueness

Correct Answer: D

Which operational risk mitigation practice by virtual asset service providers (VASPs) is most effective when considering their relationships with other VASPs?

1. A. Having no requirement to establish a correspondent relationship and build a risk assessment framework among other cryptoasset exchanges prior to transferring for or on behalf of another person
2. B. Developing cross-border correspondent relationships with cryptoasset exchanges in jurisdictions that have weak or non-existent anti-money laundering (AML) regulation or supervision
3. C. Assigning all such relationships as high risk and conducting enhanced due diligence onall of them
4. D. Gathering sufficient information on the counterpart VASP to determine the quality of the supervision it receives for transactional activities

Correct Answer: D

Which metric is most relevant for assessing liquidity risk in a cryptoasset exchange?

1. A. Number of listed tokens
2. B. Order book depth and spread
3. C. Blockchain confirmation times
4. D. Wallet address count

Correct Answer: B

Which blockchain feature ensures that once a block is added, it cannot be altered without network consensus?

1. A. Consensus algorithm
2. B. Hash immutability
3. C. Tokenization
4. D. Peer-to-peer networking

Correct Answer: B

Which scenario most likely indicates active involvement of a customer in scam activities?

1. A. Indirect receiving from a scam cluster
2. B. Indirect sending to a scam cluster
3. C. Direct sending to a scam cluster
4. D. Direct receiving from a scam cluster

Correct Answer: C