Module 5 - Legal, Regulatory, and Ethical Considerations

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Questions and Answers

Which of the following agencies in the United States is primarily responsible for regulating securities, including certain cryptocurrencies?

  • CFTC
  • SEC (correct)
  • FinCEN
  • IRS

What is a key feature of Proof of Stake (PoS) compared to Proof of Work (PoW)?

  • PoS requires solving complex mathematical problems.
  • PoS selects validators based on the number of tokens they hold. (correct)
  • PoS has higher energy consumption than PoW.
  • PoS does not require any validators.

Which regulation in the European Union focuses on data protection and privacy?

  • MiCA
  • GDPR (correct)
  • AMLD5
  • PSD2

A 51% attack refers to:

<p>A scenario where miners control 51% or more of the network's hash rate. (B)</p> Signup and view all the answers

Which of the following is NOT considered a common threat to blockchain security?

<p>Secure coding standards (C)</p> Signup and view all the answers

Zero-knowledge proofs in blockchain are used to:

<p>Verify transactions without revealing underlying data. (B)</p> Signup and view all the answers

What is the primary goal of Anti-Money Laundering (AML) regulations in the context of blockchain?

<p>To prevent illegal activities and money laundering. (C)</p> Signup and view all the answers

Which country has implemented a ban on cryptocurrency exchanges and ICOs while promoting blockchain technology for specific use cases?

<p>China (C)</p> Signup and view all the answers

Environmental concerns with blockchain technology are primarily associated with:

<p>The high energy consumption of Proof of Work. (B)</p> Signup and view all the answers

Financial inclusion through blockchain technology aims to:

<p>Provide financial services to unbanked and underbanked populations. (B)</p> Signup and view all the answers

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