Bill Would Require Korean Influencers to Disclose Crypto Holdings and Paid Promotions
What Would the Bill Require From “Finfluencers”?
South Korea’s ruling Democratic Party has introduced legislation that would require social media influencers who provide investment advice on cryptocurrencies and other assets to disclose their personal holdings and any compensation received for promotions.
According to a report from Herald Business, the proposal was put forward by Kim Seung-won, a Democratic Party lawmaker and member of the National Policy Committee. The bill seeks amendments to both the Capital Markets Act and the Virtual Asset User Protection Act.
The changes would apply to individuals who regularly offer investment recommendations through social media, broadcasts, or mass publications. Influencers would be required to disclose the types and quantities of crypto assets and financial products they personally hold, as well as any payments or incentives tied to the assets they promote.
Specific reporting standards would be defined later through a presidential decree, the report said, leaving technical details to secondary regulation.
Investor Takeaway
How Would Violations Be Treated?
Under the proposal, penalties would align with existing sanctions for capital market offenses. That includes enforcement frameworks used in cases such as price manipulation and front-running, placing influencer misconduct within the same legal category as traditional securities violations.
The alignment suggests that authorities intend to treat undisclosed paid promotion or conflicted commentary as more than a consumer protection issue. Instead, it would be folded into core market integrity rules.
Kim cited concerns about conflicts of interest and the spread of misleading information through unregulated social media commentary. According to the report, he said some influencers circulate inaccurate information and engage in self-dealing, harming investors.
Why Is Crypto Commentary Under Scrutiny?
Retail participation in digital assets remains heavily influenced by social media personalities who publish trading ideas, token reviews, and market commentary. In fast-moving crypto markets, follower-driven momentum can affect short-term pricing, especially for smaller tokens.
The proposed amendments appear designed to address two recurring concerns: undisclosed compensation and undisclosed personal exposure. When influencers promote assets they already hold — or receive payments from issuers — investors may not have a clear view of potential bias.
By mandating disclosure of both compensation and holdings, the bill seeks to make those incentives visible rather than banning promotion outright.
Investor Takeaway
How Does This Compare to Global Enforcement Trends?
South Korea’s proposal reflects a wider regulatory push targeting financial influencers. In the United Kingdom, the Financial Conduct Authority restricts the promotion of financial products to entities that receive prior approval. The FCA also introduced specific financial promotion rules for crypto assets in 2023 aimed at curbing misleading advertising of high-risk products.
In the United States, the Securities and Exchange Commission has fined several celebrities and influencers for promoting crypto assets without disclosing payments. High-profile enforcement actions have included cases involving Kim Kardashian and former NBA player Shaquille O’Neal.
The South Korean proposal goes further by combining compensation disclosure with mandatory reporting of personal holdings. If enacted, it would place crypto influencers closer to the regulatory perimeter traditionally reserved for licensed market participants.
The bill’s progress will depend on legislative debate, but its introduction adds to a broader pattern: as digital asset markets mature, authorities are paying closer attention not only to platforms and issuers, but also to the individuals who shape retail demand.
