South Korea Proposes Influencer Disclosure Law for Cryptocurrency Holdings

South Korea is taking steps to increase transparency in the world of cryptocurrency investing by proposing a new law that requires social media influencers to disclose their holdings and promotional compensation.

The bill, introduced by Democratic Party lawmaker Kim Seung-won, aims to prevent conflicts of interest and protect investors from potential biases behind financial opinions. Under the proposal, influencers would be required to disclose the types and quantities of assets they personally own, as well as any payments or benefits received for promoting cryptocurrencies.

The law would apply to individuals who regularly provide financial recommendations through social media, publications, or broadcasts, and whose advice affects investment decisions. The proposed penalties for non-compliance are similar to those for capital market offenses such as price manipulation or unfair trading practices.