Korea Targets Crypto Influencers With New Asset Rules

South Korea has introduced a new bill that would require crypto and stock influencers to disclose their personal holdings and any paid promotions tied to investment advice.

Key Takeaways

• South Korea’s Democratic Party has proposed amendments to the Capital Markets Act and the Virtual Asset User Protection Act.
• Influencers would need to disclose the type and quantity of assets they hold and any compensation received for promotions.
• Violations could face penalties similar to market manipulation and insider trading offenses.
• The move comes amid rising complaints about quasi investment advisors and expanded AI based market surveillance.

What Happened?

A lawmaker from South Korea’s ruling Democratic Party has introduced legislation aimed at increasing transparency among social media influencers who promote cryptocurrencies and stocks. The bill would require financial influencers, often called finfluencers, to reveal both their personal holdings and any payments tied to their recommendations.

The proposal reflects growing concern that undisclosed conflicts of interest and misleading online commentary may be exposing retail investors to significant risk.

Lawmaker Pushes for Greater Transparency

The legislation was introduced by Kim Seung won, a member of the National Assembly’s Political Affairs Committee. According to reports from Herald Business, the bill proposes amendments to two key laws: the Capital Markets Act and the Virtual Asset User Protection Act.

If passed, the changes would apply to individuals who repeatedly offer investment advice or encourage the public to buy or sell financial products and virtual assets. The requirements would extend across social media platforms, online publications, livestreams, and traditional broadcast channels.

Under the draft framework, influencers would be required to disclose:

• The type of crypto assets or stocks they hold.
• The quantity of those holdings.
• Any payments or compensation received for promoting specific assets.

Detailed reporting standards would later be defined through a presidential decree, leaving technical implementation to secondary regulation.

Penalties Could Mirror Market Manipulation Cases

The proposal makes clear that violations would not be treated lightly. Influencers who fail to disclose required information could face penalties similar to those applied in cases involving unfair trading practices, price manipulation, or insider trading. That includes potential fines and criminal liability.

By aligning influencer misconduct with traditional securities violations, authorities appear to be signaling that undisclosed promotion is not simply a consumer protection issue. Instead, it would fall under core market integrity rules.

In a statement cited by local media, Kim warned about risks tied to online investment advice. He reportedly said:

Rising Complaints and Broader Oversight

The bill comes amid a sharp increase in reports involving quasi investment advisors. Data from the Financial Supervisory Service shows complaints linked to these entities rose from 132 in 2018 to 1,724 in 2024.

South Korea has also expanded its regulatory oversight more broadly in 2026. The Financial Supervisory Service has deployed AI based monitoring tools designed to detect abnormal trading patterns and potential market manipulation in real time. Additional measures this year include new reporting requirements for certain foreign property investors, who must disclose cryptocurrency transaction histories in specific cases.

Global Context and Market Impact

South Korea maintains one of the world’s most active retail cryptocurrency markets. Social media driven trading trends can quickly influence token prices, especially among smaller and highly speculative assets.

Globally, regulators have increasingly targeted undisclosed crypto promotions. Authorities in the United States have fined several celebrities and influencers for promoting digital assets without revealing payments. The United Kingdom has also tightened rules around financial promotions for high risk crypto products.

However, South Korea’s proposal stands out by combining mandatory disclosure of both compensation and personal holdings. If enacted, it would represent one of the most direct regulatory actions globally aimed at social media driven financial promotion.

CoinLaw’s Takeaway

In my experience, transparency changes behavior. When influencers know their holdings and payments must be disclosed, the tone of online recommendations often becomes more cautious. I believe this move could significantly reshape Korea’s crypto promotion landscape, especially for smaller tokens where retail sentiment drives price swings.

I found the alignment with market manipulation penalties particularly important. That sends a strong message that online promotion is no longer outside the regulatory perimeter. If passed, this law could become a model for other major crypto markets watching Korea closely.

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