South Korea Proposes Law Requiring Influencers to Reveal Crypto Holdings

South Korea proposes a new law forcing influencers to disclose crypto holdings and payments, aiming to boost transparency and protect investors nationwide.

South Korea’s ruling party has introduced a bill targeting social media financial influencers, commonly called finfluencers. The proposal calls for disclosure of personal asset holdings as well as promotional compensation related to cryptocurrencies.

Lawmakers Push Transparency Rules for Crypto Promotion

According to Herald Business, Democratic Party lawmaker Kim Seung-won introduced an amendment for two major laws. Specifically, the reforms are that they alter the Capital Markets Act and the Virtual Asset User Protection Act. Therefore, the initiative has a direct impact on online investment advice conflicts of interest.

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The amendments are aimed at people who regularly make financial recommendations through social media, publications, or broadcasts. Additionally, the rules apply if such advice affects the value of assets or their investment decisions.

Under the proposal, affected influencers have to disclose the types and quantities of assets they personally own. Furthermore, it is required for disclosures to contain any payments, rewards or benefits for promotions. As a result, investors were able to make a better judgment of potential bias behind widely viewed financial opinions.

Risks by undisclosed financial interests of influential online personalities were emphasized by Kim Seung-won. He warned that faulty information and disguised incentives could result in unexpected investor losses. Consequently, lawmakers say transparency measures are urgently needed to keep the market fair.

Penalties Mirror Existing Capital Market Crime Standards

Importantly, breaches of disclosure obligations could lead to penalties commensurate with serious capital market offences. For instance, there may be punishments that are similar to those for manipulation of prices or unfair trading practices. Therefore, regulators herald strict enforcement instead of symbolic oversight.

The proposal also reflects the tightening of global regulation of influencer-led financial promotions. In the United Kingdom, the Financial Conduct Authority limits unauthorised marketing of financial products. Similarly, US regulators are still penalizing illegal investment endorsements and fake advertising.

In the United States, there have been fines and reprimands from the Securities and Exchange Commission and Financial Industry Regulatory Authority. Consequently, South Korean lawmakers say domestic rules need to comply with international standards of compliance.

Domestic data also reveals concerns about increasing unregistered advisory activity across online platforms. According to the Financial Supervisory Service, related reports were significantly increased between 2018 and 2024. Specifically, cases increased from 132 cases in 2018 to 1,724 cases in 2024.

Meanwhile, authorities cite growing evidence of risks of misinformation, unauthorized advice, and market distortion online. Therefore, regulators are more concerned today about monitoring tools and preventive compliance frameworks. Recently, South Korea announced plans to have AI-based surveillance that will monitor suspicious trading signals.

Earlier regulatory measures also followed an incident with a promotional error at Bithumb in February 2026. As a result, policies to stabilize markets and curb misleading communications were stepped up by policymakers.

Ultimately, the bill reflects South Korea’s resolve to strengthen investor protections in the realm of developing digital asset economies. Moreover, it highlights increasing accountability demands for financial content creators in retail markets. For the time being, lawmakers are still examining amendments before parliamentary debate and possible enactment.

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