South Korea Cracks Down on Crypto Finfluencer Transparency

South Korea is taking steps to regulate the growing trend of crypto finfluencers who provide investment advice on social media without proper credentials.

The Democratic Party's proposed amendments aim to bring transparency to the industry by requiring finfluencers to disclose their holdings and compensation before advising followers. This includes assets they hold in virtual currencies, as well as any fees or rewards received for promoting specific investments.

According to research, the number of reports of illegal investment advisory activity has risen sharply over the past six years, from 132 cases in 2018 to 1,724 cases in 2024. This is largely due to the ease with which finfluencers can reach a large audience on online platforms.

A senior researcher at the Capital Market Research Institute emphasized that while detection of such activities has increased, it does not necessarily protect investors from harm. A structured oversight system covering both finfluencers and financial institutions working with them is still needed.