South Korea is moving toward a mandatory disclosure regime for cryptocurrency influencers, in a bid to improve market transparency and reduce misleading investment commentary online. Under a new legislative proposal, individuals who provide crypto investment advice through social media, mass publications, or radio could be required to disclose both their personal asset holdings and any compensation received in connection with their content.
Proposal targets public-facing investment commentary
The amendments were proposed by lawmaker Kim Seung-won, who seeks to revise both the Capital Markets Act and the Virtual Asset User Protection Act. The proposal focuses on individuals who publicly share investment opinions or recommendations, particularly those active on social platforms. If adopted, affected influencers would need to reveal the types and quantities of crypto assets they hold, along with any payments or incentives tied to their commentary.
Focus on conflicts of interest and investor protection
Kim said the measure is needed to address conflicts of interest and better protect investors from unregulated social media commentary. In fast-moving crypto markets, influencers can shape sentiment quickly, and undisclosed holdings or paid promotions may make it harder for audiences to judge whether advice is impartial. The proposed framework is designed to make those relationships more visible to the public.
Penalties could mirror capital markets violations
The proposal also carries an enforcement element. Penalties for failing to comply would be aligned with those used for capital market offenses, including frameworks applied to misconduct such as price manipulation. That signals South Korea may be preparing to subject crypto-related investment communication to a stricter compliance standard, especially where retail investors are exposed to persuasive online content.
Overall, the move reflects a broader regulatory push to define clearer rules around crypto promotion, disclosure, and investor safeguards as digital asset commentary becomes increasingly mainstream.