South Korea’s ruling party has proposed mandatory asset disclosures for cryptocurrency influencers. The bill would require social media promoters to reveal personal holdings and compensation tied to digital asset recommendations.
According to local outlet Herald Business, Democratic Party lawmaker Kim Seung-won introduced amendments to the Capital Markets Act and the Virtual Asset User Protection Act. The proposal targets individuals who regularly provide investment advice on crypto or other financial products through social media, publications, or broadcasts. Specific disclosure standards would be defined later through a presidential decree.
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Will Disclosure Rules Curb Influencer-Driven Market Moves?
Under the proposal, influencers would have to disclose the types and quantities of crypto assets and financial products they hold. They would also need to report any payments or benefits received in exchange for promotional activity. Penalties for violations would align with existing capital markets offenses, including price manipulation and front-running.
The initiative reflects mounting concern over conflicts of interest in retail-driven crypto markets. Kim cited cases in which influencers allegedly spread inaccurate information or engaged in self-dealing that harmed investors. Similar regulatory scrutiny has emerged abroad, with the U.S. Securities and Exchange Commission fining public figures such as Kim Kardashian and Shaquille O’Neal for promoting crypto assets without proper payment disclosures.
The UK’s Financial Conduct Authority has already restricted financial promotions, introducing crypto-specific advertising rules in 2023 that prohibit misleading marketing of high-risk assets. Compared with these regimes, South Korea’s proposal focuses directly on personal holdings transparency rather than solely on promotional content standards. Would mandatory position disclosures materially change how retail investors interpret online crypto commentary?
Still, legislative passage and the scope of the presidential decree will determine enforcement intensity. Market participants will watch whether South Korea’s National Assembly advances the amendments and how regulators define thresholds for who qualifies as an influencer subject to disclosure rules.
