Colombian lawmakers are advancing a new bill aimed at regulating the rapidly growing cryptocurrency sector. This initiative has emerged in response to the significant increase in users and transactions, highlighting the need for a structured approach to manage the associated risks.

Led by Senator Gustavo Moreno and Congress Representative Julián López, the proposed legislation seeks to establish a licensing system for Virtual Asset Service Providers (VASPs). This system is intended to enhance consumer protection and ensure compliance with anti-money laundering and counter-terrorist financing regulations.

• The initiative addresses rising concerns about fraud and financial crime in an unregulated environment.
• Proponents believe that clear regulations will attract investment and facilitate the integration of cryptocurrencies into the national financial system.
• Opponents warn that overly strict regulations could drive businesses to relocate.

Additionally, the bill emphasizes consumer protection, marketing regulations, education, and taxation. It aims to strike a balance that fosters innovation while mitigating the risks associated with the crypto market.

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