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

Which statement is true about crypto ATMs?

1. Potential user benefits include transaction ease, speed, and privacy.

2. Fraud risks are lower for crypto ATMs.

3. A bank account is required to buy cryptocurrencies from a crypto ATM.

4. Crypto ATMs are required to collect identifying information from customers.

The correct answer is: Potential user benefits include transaction ease, speed, and privacy.

The statement highlighting potential user benefits such as transaction ease, speed, and privacy accurately reflects the characteristics of crypto ATMs. Users appreciate the convenience of accessing cryptocurrencies quickly without navigating complex online exchanges. The process is generally straightforward—customers can purchase crypto by inserting cash or using a debit card, often allowing for instantaneous transactions. Furthermore, crypto ATMs can offer a degree of privacy, which is appealing to users who wish to maintain their anonymity. While anti-money laundering and compliance regulations apply to these machines, the general appeal remains in their user-friendly approach compared to traditional financial services. In contrast, the other statements do not accurately represent the functionality or regulatory environment of crypto ATMs. For example, while some jurisdictions may require ID verification, not all crypto ATMs mandate this. Additionally, it's incorrect to claim that fraud risks are lower for crypto ATMs, as these machines can still be susceptible to various forms of fraud. Lastly, not all transactions at crypto ATMs necessitate a bank account, since many allow users to transact with cash.