South Korea’s ruling camp is moving to tighten oversight of cryptocurrency promotion on social media. Under a new legislative proposal, financial influencers who regularly publish investment commentary through social platforms, publications, or broadcasts would have to disclose what digital assets and financial products they hold, along with any compensation linked to crypto promotions. Online commentary that can sway retail trading is now being treated as a regulatory priority.
The amendments were introduced by Kim Seung-won, a Democratic Party lawmaker and member of the National Policy Committee. Herald Business reported that the proposal would revise both the Capital Markets Act and the Virtual Asset User Protection Act. The target is not limited to licensed finance professionals. It covers people who consistently share investment views in public and have the ability to shape market sentiment or trading decisions.
Holdings and promotional payments would have to be reported
Under the bill, so-called finfluencers would need to disclose whether they received payment in connection with crypto promotions. They would also be required to report the types and quantities of digital assets and financial products they personally own. Specific disclosure standards are expected to be defined later through a presidential decree. The framework is being set in law first, with detailed reporting rules to follow.
Lawmakers say the main issue is conflict of interest. If an influencer already holds a token and promotes it without making that position public, investors have little basis to judge whether the message is genuine analysis or an attempt to benefit an existing position. Kim pointed to growing concern over misleading information and self-dealing in online investment circles, which has become a core justification for the amendments.
Penalties may mirror capital market violations
The proposal also stands out for the level of punishment it suggests. Violations would be handled in line with existing capital market offenses, with consequences comparable to cases involving price manipulation or front-running. That raises the stakes. Influencers who fail to make the required disclosures could face legal and financial penalties, not just platform-level restrictions.
Regulators argue that undisclosed holdings create a clear incentive to push prices higher for personal gain. Social media can spread trading narratives very quickly, and speculative behavior often travels with that speed. Lawmakers believe stronger disclosure rules could curb the chain in which a promotion goes viral, retail traders pile in, and losses follow.
Seoul’s move matches a wider regulatory pattern
South Korea is not acting in isolation. In the United Kingdom, the Financial Conduct Authority limits financial promotions to approved entities and introduced dedicated crypto promotion rules in 2023 to address misleading advertising. In the United States, the Securities and Exchange Commission has penalized several public figures over undisclosed crypto endorsements, including Kim Kardashian and former NBA player Shaquille O’Neal.
Officials in South Korea are now trying to apply the same transparency logic to their domestic market. The country remains one of the world’s busiest retail crypto trading venues, and statements from online influencers can quickly affect buying and selling behavior. In that setting, disclosure of personal holdings and paid promotional ties is being framed as part of investor protection.