South Korea Moves to Regulate Crypto Influencers With Mandatory Disclosure Rules
South Korean lawmakers are drafting legislation requiring social media influencers to disclose cryptocurrency holdings and paid promotions when offering investment advice. The proposed rules, spearheaded by legislator Kim Seung-won, WOULD apply to livestreamers, bloggers, and broadcasters who repeatedly recommend stocks or digital assets.
The measure targets potential conflicts of interest where promoters might HYPE assets before selling during price spikes. Penalties for non-compliance could mirror existing sanctions for unfair trading—including fines and criminal charges for egregious cases. This follows existing practices where public officials already disclose crypto holdings to ethics committees.
The legislation amends both the Capital Markets Act and Virtual Asset User Protection Act, reflecting Seoul's tightening grip on speculative trading practices. Analysts note the rules could particularly impact pump-and-dump schemes that disproportionately affect retail investors.
