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South Korea proposed mandatory asset disclosures for crypto influencers.
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Influencers would need to reveal holdings and paid promotions.
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Penalties would align with existing capital market violations.
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The move follows global scrutiny of financial influencers.
Transparency for Social Media Investment Advice
A South Korean lawmaker has introduced legislation requiring crypto influencers to disclose their personal asset holdings and any compensation received for promoting digital assets.
The proposal would amend the Capital Markets Act and the Virtual Asset User Protection Act, targeting individuals who regularly provide investment recommendations through social media or broadcasts.
Influencers would be required to disclose the types and quantities of assets they hold, along with any promotional compensation tied to recommendations.
Crackdown on Conflicts of Interest
The initiative reflects growing concerns about undisclosed conflicts of interest and market manipulation via social media.
Penalties would mirror those applied to traditional capital market violations such as front-running and price manipulation.
The move aligns with international enforcement trends. The UK’s FCA has implemented strict financial promotion rules for crypto, while the U.S. SEC has fined high-profile influencers for failing to disclose paid promotions.
If passed, South Korea would become one of the first major jurisdictions to impose explicit disclosure obligations on crypto-focused influencers.
