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

Which technology is considered a de-anonymizing tool that helps lower money laundering risk?

1. The Onion Router (Tor)

2. Mixing-enabled wallets

3. Decentralized finance protocols

4. Blockchain analytical tools

The correct answer is: Blockchain analytical tools

Blockchain analytical tools are vital for de-anonymizing transactions within cryptocurrencies, which directly contributes to mitigating money laundering risks. These tools employ advanced analytics to track transactions on the blockchain, allowing investigators to identify the flow of funds, detect suspicious patterns, and link transactions to real-world identities. By analyzing the transparency of blockchain data, these tools help law enforcement and financial institutions better understand the relationship between various parties involved in cryptocurrency transactions. The effectiveness of blockchain analytical tools lies in their ability to build comprehensive transaction histories that reveal connections and transactions that might otherwise remain obscure. This capability is essential in combating money laundering, as it allows authorities to trace illicit activities more effectively than relying solely on anonymous methods or decentralized systems. In contrast, the other options either enhance anonymity or do not significantly aid in tracking illicit financial flows. For example, The Onion Router (Tor) is designed specifically to provide anonymity online, and mixing-enabled wallets obscure transaction origins rather than clarify them. Decentralized finance protocols, while innovative, often focus on enabling transactions without the oversight that blockchain analytics can provide.