Chapter D1

Question 1

True / False: Virtual currencies are nearly impossible to trace.

Answer 1

True.

Question 2

True / False: According to the European Court Justice Ruling, virtual currencies are not tangible property.

Answer 2

True.

Question 3

The downsides of smart contracts include:

Answer 3

privacy and transparency concerns,

the need for continuous updates

Question 4

An advantage of considering virtual currencies as money is…

Answer 4

the avoidance of credit fees to merchants,

the avoidance of third parties

Question 5

Which of the following is/are (an) issue(s) of virtual currencies affecting investors and consumers?

Answer 5

Displacement of national currencies,
Tax aspects,
Potential fraud

Question 6

Due to which factors are virtual currencies adopted by criminal elements?

Answer 6

Anonymity,

Missing of law enforcement regulations

Question 7

According to ESMA, risks of DLT to securities markets within the EU consist of:

Answer 7

regulatory and legal issues,

technological issues

Question 8

The function of the E.U. Blockchain Observatory and Forum is to…

Answer 8

consolidate expertise,

cooperate with existing EU states’ and businesses’ initiatives

Question 9

True / False: Virtual currencies can be considered as fiat money.

Answer 9

False
BC –> Fiat money is a currency established as money, often by government regulation, that does not have intrinsic value.

Question 10

Some organizations dealing with the regulation or issues of virtual currencies are:

Answer 10

G20,
United Nations,
European Court Justice Ruling