Cryptoasset Anti-Financial Crime Specialist (CCAS) Certification Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Cryptoasset Anti-Financial Crime Specialist (CCAS) Certification. Enhance your readiness with flashcards and multiple-choice questions, each supported by hints and explanations. Gear up for your exam!

Practice this question and more.

Which statement accurately describes a hosted wallet?

It allows users to transact pseudonymously because there is no KYC.
There is no need for a third party to validate transactions.
Users control the private keys and therefore the assets.
It is controlled by the user and a virtual asset service provider (VASP).

The correct answer is: It is controlled by the user and a virtual asset service provider (VASP).

A hosted wallet is characterized by the involvement of a virtual asset service provider (VASP) in the management of the wallet. Users rely on the VASP to handle the technical aspects of the wallet, such as storing the private keys and facilitating transactions. This arrangement allows users to access and utilize their crypto assets without needing to manage the private keys themselves, effectively making it a shared control scenario where both the user and the VASP play roles in the wallet's operation. This type of wallet provides convenience and ease of use, particularly for individuals who may not be familiar with the complexities of key management and transaction processes. With the VASP having control over the wallet infrastructure, it also typically incorporates compliance measures, such as Know Your Customer (KYC) protocols, to meet regulatory obligations, which distinguishes it from non-custodial wallets where users have full control over their private keys and the associated responsibilities.