Acams CCAS Practice Exam Questions & Answers

Monero is a privacy-focused blockchain designed with built-in features like ring signatures, stealth addresses, and confidential transactions to obfuscate sender, receiver, and transaction amounts, making tracing difficult.

Cardano, Polygon, and Ethereum are not designed primarily with these privacy features and have publicly traceable ledgers, although privacy solutions may be layered on.

Code uniqueness is critical because reuse or replication of vulnerable code exposes protocols to known exploits. Unique, well-audited, and secure code minimizes compromise risk in decentralized finance (DeFi) and smart contracts.

Security standards (A), authentication (B), and regulation (C) are important but secondary to the fundamental security of the code itself.

Red flags include private sharing of NFTs without public trading (A), indicating potential lack of transparency, and new coins with untested protocols controlled by few wallets (C), signaling possible manipulation or fraud.

Tokens endorsed by celebrities with price increases (D) or active social media presence (E) are less directly indicative of fraud but require monitoring. Low social media presence with wide ownership and original whitepapers (B) is typically less suspicious.

Privacy coins like Monero use cryptographic features to obscure transaction details, increasing AML risk and regulatory scrutiny.

Proof-of-Stake (PoS) replaces the energy-intensive mining process of Proof-of-Work by allowing validators to secure the network based on the amount of cryptocurrency they ''stake'' as collateral. Validators are rewarded for correctly validating transactions and risk losing their stake if they act dishonestly. Regulatory AML/CFT programs must consider validator concentration risks and the jurisdictional exposure of validators in PoS systems.