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The financial Action Task force defines virtual asset 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:

The Financial Action Task Force (FATF) defines Virtual Asset Service Providers (VASPs) in its guidelines to include entities that engage in the exchange of virtual assets for fiat currency and the transfer of virtual assets. This categorization is part of the FATF's efforts to regulate and monitor the flow of virtual assets to mitigate risks associated with illicit activities.

Key Details:

Exchange and Conversion Services: FATF recognizes companies that offer exchange services between virtual assets and fiat currencies as VASPs. These services are critical for converting virtual assets into forms that can be readily used in traditional markets.

Transfer Services: VASPs that facilitate the transfer of virtual assets are also within the FATF's regulatory scope. This includes services that manage, transfer, or act as intermediaries in the movement of virtual assets between users, ensuring these transactions are conducted transparently and within regulatory frameworks.

Therefore, C. Exchange virtual assets for fiat currency and D. Transfer virtual assets are the correct answers, as they align with the FATF's definition of VASPs.

asked 24/10/2024
Juan Carlos Yepez
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