Chapter D1 Flashcards
True / False: Virtual currencies are nearly impossible to trace.
True.
True / False: According to the European Court Justice Ruling, virtual currencies are not tangible property.
True.
The downsides of smart contracts include:
privacy and transparency concerns,
the need for continuous updates
An advantage of considering virtual currencies as money is…
the avoidance of credit fees to merchants,
the avoidance of third parties
Which of the following is/are (an) issue(s) of virtual currencies affecting investors and consumers?
Displacement of national currencies,
Tax aspects,
Potential fraud
Due to which factors are virtual currencies adopted by criminal elements?
Anonymity,
Missing of law enforcement regulations
According to ESMA, risks of DLT to securities markets within the EU consist of:
regulatory and legal issues,
technological issues
The function of the E.U. Blockchain Observatory and Forum is to…
consolidate expertise,
cooperate with existing EU states’ and businesses’ initiatives
True / False: Virtual currencies can be considered as fiat money.
False
BC –> Fiat money is a currency established as money, often by government regulation, that does not have intrinsic value.
Some organizations dealing with the regulation or issues of virtual currencies are:
G20,
United Nations,
European Court Justice Ruling