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

What functions can third-party blockchain analytics tools perform?

1. Identifying specific owners of crypto wallets

2. Identifying and risk-rating wallets on the blockchain

3. Determining trading volume and market cap of held cryptoassets

4. Tracing the final destination of stolen cryptoassets

The correct answer is: Identifying and risk-rating wallets on the blockchain

Third-party blockchain analytics tools are specifically designed to provide insights and analyses of blockchain activity, particularly in relation to tracking and assessing risks associated with crypto wallets. Identifying and risk-rating wallets on the blockchain involves analyzing transaction patterns, identifying potential links to illicit activities, and assessing the likelihood that a wallet may be involved in money laundering or other financial crimes. This capability is essential for compliance purposes, allowing businesses and regulatory bodies to mitigate risks related to cryptocurrencies. By contrast, while some tools may offer insights related to the other functions listed, they typically lack the capability to definitively identify specific owners of crypto wallets due to the pseudonymous nature of blockchain technology. Additionally, while blockchain analytics may provide data on trading volumes and market capitalizations, these functions are generally more related to financial analysis rather than risk assessment. Tracing the final destination of stolen cryptoassets is a complex task that can be informed by analytics tools, but such tracing is often limited and may not provide full visibility into the entire chain of transactions post-theft. Thus, the primary function that aligns with the capabilities of blockchain analytics tools is their ability to identify and risk-rate wallets.