TCCA Practice Questions (v1.0)

TCCA Indicative Assessment Items

Sample Questions for Examination Familiarisation

Version: 2.3
Effective: 1 January 2026
For: TrustCrypto Certified Crypto Advisor (TCCA)

Important Notice

These examples are provided to familiarise candidates with assessment style and format.

These items do not:

Reflect the full scope, weighting, or difficulty of the examination
Constitute a representative sample of examinable content
Guarantee coverage of all domains or learning outcomes
Serve as a study guide or comprehensive preparation tool

The actual examination contains different questions. Candidates must prepare across all syllabus domains.

Multiple-Choice Questions (Indicative Examples)

Question 1 (Domain 1: Custody Risk)

A client holds Bitcoin in a non-custodial wallet where they control the private keys. They ask about the primary operational risk of this arrangement.

Which of the following represents the most significant risk?

A) Exchange insolvency
B) Regulatory seizure of assets
C) Loss of private key or seed phrase
D) Network consensus failure

Correct Answer: C

Rationale: Non-custodial arrangements eliminate counterparty risk (ruling out A), but introduce operational risk centred on key management. Loss or compromise of private keys results in permanent loss of access. While B and D are possible, C represents the most direct and common risk in self-custody.

Question 2 (Domain 2: FCA Regulatory Obligations)

An adviser wishes to promote a crypto portfolio service to UK retail clients via social media. Which of the following statements is correct under current FCA guidance?

A) Cryptoasset promotions are unrestricted provided they include a risk warning
B) Cryptoasset promotions must be approved by an FCA-authorised firm
C) Cryptoasset promotions are prohibited to retail clients in all circumstances
D) Cryptoasset promotions require pre-approval by the FCA directly

Correct Answer: B

Rationale: Under FCA rules effective from October 2023, financial promotions relating to qualifying cryptoassets must be communicated or approved by an FCA-authorised firm. A is incorrect (approval is required, not just warnings). C is incorrect (promotions are permitted subject to approval). D is incorrect (approval is by authorised firms, not directly by the FCA).

Question 3 (Domain 3: Tax Treatment)

A UK taxpayer purchases 1 BTC on 1 March for £30,000. They purchase another 1 BTC on 15 March for £32,000. On 20 March, they sell 1 BTC for £35,000.

Under HMRC pooling rules, what is the cost basis for the disposal?

A) £30,000
B) £31,000
C) £32,000
D) £35,000

Correct Answer: B

Rationale: HMRC applies pooling rules to cryptoassets. The cost basis is the average cost of the pool: (£30,000 + £32,000) / 2 = £31,000. Same-day and 30-day matching rules take precedence where applicable, but in this scenario, standard pooling applies.

Question 4 (Domain 4: Portfolio Construction)

A client with a moderate risk tolerance holds a diversified equity portfolio. They propose allocating 40% of total portfolio value to Bitcoin. Which response is most appropriate?

A) Approve the allocation as Bitcoin offers diversification benefits
B) Decline to advise as cryptoassets are outside regulatory scope
C) Challenge the allocation as inconsistent with stated risk tolerance
D) Approve provided the client signs a high-risk acknowledgement

Correct Answer: C

Rationale: A 40% allocation to a highly volatile, speculative asset is inconsistent with moderate risk tolerance. The adviser's duty is to assess suitability and challenge unsuitable proposals. A ignores suitability principles. B is incorrect (advice is permitted). D confuses disclosure with suitability assessment.

Question 5 (Domain 5: Ethics & Suitability)

An adviser receives a referral fee from a crypto exchange for clients who open accounts. When must this conflict be disclosed?

A) Only if the client asks about referral arrangements
B) At the point of recommendation or before
C) After the client has opened an account
D) Disclosure is not required for referral fees

Correct Answer: B

Rationale: Material conflicts of interest must be disclosed clearly before or at the point of recommendation. This allows the client to assess the advice with full knowledge of potential bias. Disclosure after the fact (C) or only on request (A) does not meet regulatory or ethical standards.

Question 6 (Domain 1: Blockchain Fundamentals)

Which of the following best describes a "hard fork" in a blockchain network?

A) A temporary chain split that resolves automatically
B) A permanent divergence creating two separate blockchains
C) A consensus mechanism upgrade requiring validator approval
D) A protocol change that is backwards-compatible

Correct Answer: B

Rationale: A hard fork is a non-backwards-compatible protocol change that results in a permanent split, creating two separate chains (e.g., Bitcoin and Bitcoin Cash). A describes a soft fork or temporary orphan blocks. C is too narrow. D describes a soft fork.

Question 7 (Domain 2: Regulatory Perimeter)

Which of the following activities falls outside the current FCA regulatory perimeter for cryptoassets?

A) Operating a UK-based crypto exchange
B) Providing custody of cryptoassets for clients
C) Advising on unregulated utility tokens
D) Issuing security tokens in the UK

Correct Answer: C

Rationale: As of current FCA guidance, advising on unregulated cryptoassets (pure utility tokens, payment tokens) falls outside the perimeter, though promotional rules apply. A (exchanges are subject to AML/CTF registration), B (custody may trigger regulatory requirements), and D (security tokens are regulated investments) fall within or adjacent to regulated activity.

Question 8 (Domain 3: Tax - Staking Treatment)

A UK taxpayer stakes Ethereum and receives staking rewards of £5,000 during the tax year. How should this be treated for UK tax purposes under HMRC guidance?

A) Capital gain on disposal
B) Income tax on receipt
C) Tax-free as a return of capital
D) Deferred until tokens are sold

Correct Answer: B

Rationale: HMRC treats staking rewards as income (miscellaneous income or trading income depending on circumstances) at the point of receipt. The amount is taxable in the year received. Subsequent disposal may trigger capital gains, but initial receipt is income.

Question 9 (Domain 4: Risk Management)

A client holds a crypto portfolio that has appreciated 300% in six months. They wish to "let it ride" without rebalancing. What is the adviser's primary concern?

A) Missed opportunity for further gains
B) Concentration risk and deviation from target allocation
C) Capital gains tax crystallisation
D) Regulatory restrictions on rebalancing frequency

CorrectAnswer: B

Rationale: Significant appreciation creates concentration risk, causing the portfolio to deviate from the client's target allocation and risk profile. The adviser's role is to manage risk-adjusted returns, not maximise absolute returns. C is a consideration but secondary to suitability. D is not a regulatory constraint.

Question 10 (Domain 5: Professional Boundaries)

A client asks for advice on structuring a crypto mining operation for tax efficiency. The adviser has no specialist tax knowledge. What is the most appropriate response?

A) Provide general guidance and disclaim liability
B) Research the topic and provide best-effort advice
C) Decline and refer the client to a specialist tax adviser
D) Advise the client that tax planning is outside FCA scope

Correct Answer: C

Rationale: Advisers must operate within their competency boundaries. Providing advice outside one's expertise (A, B) breaches professional standards and exposes the client to harm. D is a misstatement (tax advice itself may be unregulated, but providing incompetent advice is an ethical breach).

Scenario-Based Questions (Illustrative Examples)

Scenario 1: Regulatory Compliance & Client Suitability

Background:

Sarah is a 28-year-old marketing professional earning £45,000 annually. She has £10,000 in savings, no dependents, and rents her accommodation. She approaches you requesting advice on investing her entire savings into a portfolio of altcoins (80% allocation) with a view to "early retirement in five years."

Sarah has no investment experience beyond a workplace pension. She found you through a YouTube video you posted titled "10x Crypto Gains in 2024."

Question:

(a) Identify three regulatory or ethical concerns arising from this scenario.
(b) Outline the steps you should take before providing any advice.
(c) If Sarah insists on proceeding despite warnings, what is your obligation?

Indicative Answer:

(a) Three concerns:

Suitability: 80% allocation to high-risk altcoins is inconsistent with Sarah's financial position (limited savings, no emergency fund, renting, no investment experience).
Financial promotion standards: The YouTube video title "10x Crypto Gains" may breach FCA requirements for clear, fair, not misleading communications and appropriate risk warnings.
Appropriateness/vulnerability: Sarah's lack of investment knowledge and unrealistic expectations ("early retirement in five years") suggest she does not understand the risks.

(b) Steps before advising:

Conduct a full fact-find to understand Sarah's financial position, goals, risk tolerance, and capacity for loss.
Assess whether cryptoasset advice is appropriate given her knowledge and experience.
Provide clear risk warnings about volatility, potential for total loss, and the speculative nature of altcoins.
Review the YouTube content for compliance with financial promotion rules and consider remedial action if required.

(c) If client insists:

The adviser is not obliged to provide advice that they believe is unsuitable. If Sarah insists on proceeding against advice:

Document the discussion and warnings given.
Consider whether to decline the instruction on suitability grounds.
If proceeding (e.g., execution-only), ensure appropriateness assessment is documented and the client acknowledges risks in writing.
Do not misrepresent the arrangement as "advice" if it is execution-only.

Scenario 2: Tax Treatment & Evidence

Background:

James, a UK taxpayer, provides you with the following transaction history:

1 Jan 2024: Purchased 2 BTC at £25,000 each (£50,000 total)
15 Jan 2024: Purchased 1 BTC at £28,000
10 Feb 2024: Sold 2 BTC at £30,000 each (£60,000 total)
15 Feb 2024: Purchased 1 BTC at £29,000

James cannot provide evidence of the 15 Jan purchase and believes "HMRC won't care about one transaction."

Question:

(a) Calculate the capital gains tax liability for the 10 Feb disposal, assuming: - Higher-rate taxpayer (CGT rate: 20%) - Annual CGT allowance: £6,000

(b) Explain the record-keeping risk arising from the missing evidence.

Indicative Answer:

(a) Capital gains calculation:

Step 1: Apply same-day rule
No BTC purchased on the same day as the 10 Feb disposal.

Step 2: Apply 30-day rule
James purchased 1 BTC on 15 Feb (within 30 days after disposal).

1 BTC disposed is matched to 15 Feb purchase at £29,000.
Proceeds for this BTC: £30,000
Gain: £30,000 - £29,000 = £1,000

Step 3: Apply pooling rule for remaining disposal
Remaining disposal: 1 BTC
Pool cost basis: (£50,000 + £28,000) / 3 BTC = £26,000 per BTC

Proceeds: £30,000
Cost: £26,000
Gain: £4,000

Total gain: £1,000 + £4,000 = £5,000
Less annual allowance: £5,000 - £6,000 = £0 taxable (allowance covers full gain)

(b) Record-keeping risk:

HMRC requires taxpayers to retain evidence of crypto transactions for at least 5 years (longer if under investigation).

Without evidence of the 15 Jan purchase:

James cannot prove the cost basis, potentially overstating gains.
HMRC may reject the cost claim and assess tax on a higher gain.
In a dispute, burden of proof rests with the taxpayer.

(c) Advice on missing evidence:

Attempt to recover evidence: Contact the exchange or wallet provider for transaction records. Many platforms retain historical data.
Do not fabricate or estimate: If evidence cannot be recovered, do not estimate the transaction. Seek specialist tax advice on how to proceed.
Disclose the gap: If filing a tax return, consider disclosing the incomplete records to HMRC with an explanation. Proactive disclosure may mitigate penalties.
Implement future record-keeping: Advise James to maintain contemporaneous records of all transactions going forward (transaction IDs, screenshots, statements).
Do not dismiss HMRC risk: Contrary to James's belief, HMRC takes crypto tax compliance seriously and has data-sharing arrangements with exchanges.

Notes on Marking

Multiple-Choice Questions

One mark per correct answer.
No partial credit.
Rationale is provided here for learning purposes but would not appear in the examination.

Scenario Questions

Marking allocates points for:
- Identification of relevant issues
- Application of appropriate frameworks or regulations
- Practical, defensible recommendations
- Demonstration of professional judgement
Candidates are not expected to reproduce legislation verbatim.
Credit is awarded for structured reasoning and application to the scenario.

Disclaimer

These indicative items are for familiarisation only.

The actual TCCA examination:

Contains different questions
May test domains not represented here
Includes greater complexity and nuance
Assesses applied competence, not pattern recognition

Candidates who rely solely on these examples will not be adequately prepared.

Contact

Assessment enquiries: exams@trustcrypto.co.uk

TrustCrypto Institute
Version 2.3 | Effective 1 January 2026

TCCA Indicative Assessment Items

Sample Questions for Examination Familiarisation

Version: 2.3
Effective: 1 January 2026
For: TrustCrypto Certified Crypto Advisor (TCCA)

Important Notice

These examples are provided to familiarise candidates with assessment style and format.

These items do not:

Reflect the full scope, weighting, or difficulty of the examination
Constitute a representative sample of examinable content
Guarantee coverage of all domains or learning outcomes
Serve as a study guide or comprehensive preparation tool

The actual examination contains different questions. Candidates must prepare across all syllabus domains.

Multiple-Choice Questions (Indicative Examples)

Question 1 (Domain 1: Custody Risk)

A client holds Bitcoin in a non-custodial wallet where they control the private keys. They ask about the primary operational risk of this arrangement.

Which of the following represents the most significant risk?

A) Exchange insolvency
B) Regulatory seizure of assets
C) Loss of private key or seed phrase
D) Network consensus failure

Correct Answer: C

Question 2 (Domain 2: FCA Regulatory Obligations)

An adviser wishes to promote a crypto portfolio service to UK retail clients via social media. Which of the following statements is correct under current FCA guidance?

Correct Answer: B

Question 3 (Domain 3: Tax Treatment)

A UK taxpayer purchases 1 BTC on 1 March for £30,000. They purchase another 1 BTC on 15 March for £32,000. On 20 March, they sell 1 BTC for £35,000.

Under HMRC pooling rules, what is the cost basis for the disposal?

A) £30,000
B) £31,000
C) £32,000
D) £35,000

Correct Answer: B

Question 4 (Domain 4: Portfolio Construction)

A client with a moderate risk tolerance holds a diversified equity portfolio. They propose allocating 40% of total portfolio value to Bitcoin. Which response is most appropriate?

Correct Answer: C

Question 5 (Domain 5: Ethics & Suitability)

An adviser receives a referral fee from a crypto exchange for clients who open accounts. When must this conflict be disclosed?

A) Only if the client asks about referral arrangements
B) At the point of recommendation or before
C) After the client has opened an account
D) Disclosure is not required for referral fees

Correct Answer: B

Question 6 (Domain 1: Blockchain Fundamentals)

Which of the following best describes a "hard fork" in a blockchain network?

Correct Answer: B

Question 7 (Domain 2: Regulatory Perimeter)

Which of the following activities falls outside the current FCA regulatory perimeter for cryptoassets?

A) Operating a UK-based crypto exchange
B) Providing custody of cryptoassets for clients
C) Advising on unregulated utility tokens
D) Issuing security tokens in the UK

Correct Answer: C

Question 8 (Domain 3: Tax - Staking Treatment)

A UK taxpayer stakes Ethereum and receives staking rewards of £5,000 during the tax year. How should this be treated for UK tax purposes under HMRC guidance?

A) Capital gain on disposal
B) Income tax on receipt
C) Tax-free as a return of capital
D) Deferred until tokens are sold

Correct Answer: B

Question 9 (Domain 4: Risk Management)

A client holds a crypto portfolio that has appreciated 300% in six months. They wish to "let it ride" without rebalancing. What is the adviser's primary concern?

A) Missed opportunity for further gains
B) Concentration risk and deviation from target allocation
C) Capital gains tax crystallisation
D) Regulatory restrictions on rebalancing frequency

CorrectAnswer: B

Question 10 (Domain 5: Professional Boundaries)

A client asks for advice on structuring a crypto mining operation for tax efficiency. The adviser has no specialist tax knowledge. What is the most appropriate response?

Correct Answer: C

Scenario-Based Questions (Illustrative Examples)

Scenario 1: Regulatory Compliance & Client Suitability

Background:

Sarah has no investment experience beyond a workplace pension. She found you through a YouTube video you posted titled "10x Crypto Gains in 2024."

Question:

Indicative Answer:

(a) Three concerns:

Suitability: 80% allocation to high-risk altcoins is inconsistent with Sarah's financial position (limited savings, no emergency fund, renting, no investment experience).
Financial promotion standards: The YouTube video title "10x Crypto Gains" may breach FCA requirements for clear, fair, not misleading communications and appropriate risk warnings.
Appropriateness/vulnerability: Sarah's lack of investment knowledge and unrealistic expectations ("early retirement in five years") suggest she does not understand the risks.

(b) Steps before advising:

Conduct a full fact-find to understand Sarah's financial position, goals, risk tolerance, and capacity for loss.
Assess whether cryptoasset advice is appropriate given her knowledge and experience.
Provide clear risk warnings about volatility, potential for total loss, and the speculative nature of altcoins.
Review the YouTube content for compliance with financial promotion rules and consider remedial action if required.

(c) If client insists:

The adviser is not obliged to provide advice that they believe is unsuitable. If Sarah insists on proceeding against advice:

Document the discussion and warnings given.
Consider whether to decline the instruction on suitability grounds.
If proceeding (e.g., execution-only), ensure appropriateness assessment is documented and the client acknowledges risks in writing.
Do not misrepresent the arrangement as "advice" if it is execution-only.

Scenario 2: Tax Treatment & Evidence

Background:

James, a UK taxpayer, provides you with the following transaction history:

1 Jan 2024: Purchased 2 BTC at £25,000 each (£50,000 total)
15 Jan 2024: Purchased 1 BTC at £28,000
10 Feb 2024: Sold 2 BTC at £30,000 each (£60,000 total)
15 Feb 2024: Purchased 1 BTC at £29,000

James cannot provide evidence of the 15 Jan purchase and believes "HMRC won't care about one transaction."

Question:

(a) Calculate the capital gains tax liability for the 10 Feb disposal, assuming: - Higher-rate taxpayer (CGT rate: 20%) - Annual CGT allowance: £6,000

(b) Explain the record-keeping risk arising from the missing evidence.

Indicative Answer:

(a) Capital gains calculation:

Step 1: Apply same-day rule
No BTC purchased on the same day as the 10 Feb disposal.

Step 2: Apply 30-day rule
James purchased 1 BTC on 15 Feb (within 30 days after disposal).

1 BTC disposed is matched to 15 Feb purchase at £29,000.
Proceeds for this BTC: £30,000
Gain: £30,000 - £29,000 = £1,000

Step 3: Apply pooling rule for remaining disposal
Remaining disposal: 1 BTC
Pool cost basis: (£50,000 + £28,000) / 3 BTC = £26,000 per BTC

Proceeds: £30,000
Cost: £26,000
Gain: £4,000

Total gain: £1,000 + £4,000 = £5,000
Less annual allowance: £5,000 - £6,000 = £0 taxable (allowance covers full gain)

(b) Record-keeping risk:

HMRC requires taxpayers to retain evidence of crypto transactions for at least 5 years (longer if under investigation).

Without evidence of the 15 Jan purchase:

James cannot prove the cost basis, potentially overstating gains.
HMRC may reject the cost claim and assess tax on a higher gain.
In a dispute, burden of proof rests with the taxpayer.

(c) Advice on missing evidence:

Attempt to recover evidence: Contact the exchange or wallet provider for transaction records. Many platforms retain historical data.
Do not fabricate or estimate: If evidence cannot be recovered, do not estimate the transaction. Seek specialist tax advice on how to proceed.
Disclose the gap: If filing a tax return, consider disclosing the incomplete records to HMRC with an explanation. Proactive disclosure may mitigate penalties.
Implement future record-keeping: Advise James to maintain contemporaneous records of all transactions going forward (transaction IDs, screenshots, statements).
Do not dismiss HMRC risk: Contrary to James's belief, HMRC takes crypto tax compliance seriously and has data-sharing arrangements with exchanges.

Notes on Marking

Multiple-Choice Questions

One mark per correct answer.
No partial credit.
Rationale is provided here for learning purposes but would not appear in the examination.

Scenario Questions

Marking allocates points for:
- Identification of relevant issues
- Application of appropriate frameworks or regulations
- Practical, defensible recommendations
- Demonstration of professional judgement
Candidates are not expected to reproduce legislation verbatim.
Credit is awarded for structured reasoning and application to the scenario.

Disclaimer

These indicative items are for familiarisation only.

The actual TCCA examination:

Contains different questions
May test domains not represented here
Includes greater complexity and nuance
Assesses applied competence, not pattern recognition

Candidates who rely solely on these examples will not be adequately prepared.

Contact

Assessment enquiries: exams@trustcrypto.co.uk

TrustCrypto Institute
Version 2.3 | Effective 1 January 2026