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The Financial Action Task force defines virtual asset service providers as companies that (choose two):

A.

Sell products for virtual currency

Answers
A.

Sell products for virtual currency

B.

Purchase virtual currency

Answers
B.

Purchase virtual currency

C.

Exchange virtual assets for fiat currency

Answers
C.

Exchange virtual assets for fiat currency

D.

Transfer virtual assets

Answers
D.

Transfer virtual assets

Suggested answer: C, D

Explanation:

According to the Financial Action Task Force (FATF), Virtual Asset Service Providers (VASPs) are entities or companies that facilitate activities related to virtual assets. Specifically, VASPs include businesses that exchange virtual assets for fiat currency and transfer virtual assets. These activities are regulated to prevent money laundering, terrorist financing, and other illicit activities.

Key Details:

Exchange of Virtual Assets for Fiat Currency: VASPs often act as intermediaries that enable the conversion between virtual assets (like cryptocurrencies) and traditional fiat currencies. This function is central to enabling liquidity and usability of cryptocurrencies within the traditional financial system.

Transfer of Virtual Assets: VASPs may also provide services that involve the transfer of virtual assets from one user to another, which includes activities such as facilitating peer-to-peer transactions, wallet services, or custodial services.

FATF Standards and Compliance: The FATF has established guidelines for VASPs to enhance transparency and ensure compliance with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations.

Thus, the correct answers are C. Exchange virtual assets for fiat currency and D. Transfer virtual assets, as these are the core activities defined for VASPs by the FATF.

asked 24/10/2024
Grégory CALIX
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