The proposed amendments target two existing laws: the Capital Market and Financial Investment Business Act and the Act on the Protection of Virtual Asset Users.
South Korea Crypto News
South Korea is preparing legislation that would compel social media personalities promoting cryptocurrencies and stocks to disclose both their financial holdings and any compensation they receive for promotional activity. The bill is being drafted by Kim Seung-won, a lawmaker from the Democratic Party of Korea and a member of the National Assembly's Political Affairs Committee, according to a report from Korean business outlet Herald Business.
The proposed amendments target two existing laws: the Capital Market and Financial Investment Business Act and the Act on the Protection of Virtual Asset Users. Under the draft rules, any individual who repeatedly provides investment guidance or accepts payment to encourage the public to buy or sell financial products or virtual assets would be required to reveal the compensation received, along with the type and quantity of the assets they personally hold. The rules would cover advice shared through publications, online platforms, and broadcast media, with specific qualifying criteria to be defined by presidential decree.
Kim framed the proposal as a direct response to a growing category of online commentators operating outside formal licensing requirements. "So-called fin-influencers are emerging, offering investment advice to unspecified individuals without compensation from positions of significant public influence," Kim reportedly said, adding that such individuals have caused measurable financial harm to retail investors.
Penalties under the proposed law could reach a level of severity comparable to market manipulation or insider trading violations. That would place crypto influencer misconduct in the same legal bracket as some of the most serious financial offenses under South Korean law, a notable shift from the currently limited enforcement options available for undisclosed promotions.
The legislative push is backed by a clear upward trend in complaints. South Korea's Financial Supervisory Service recorded 132 reports involving quasi-investment advisors in 2018. That number reached 1,724 in 2024, a more than twelvefold increase over six years, reflecting how rapidly the influencer-driven investment promotion space has grown and how far formal oversight has lagged behind.
Regulatory action on this front is not unique to South Korea. The United Kingdom's Financial Conduct Authority restricts financial promotions to those with prior regulatory approval, while the United States Securities and Exchange Commission and the Financial Industry Regulatory Authority have each issued fines tied to paid promotional activity that was not disclosed to audiences.
In January 2026, Italy's market regulator CONSOB circulated guidance from the European Securities and Markets Authority confirming that EU rules on investment promotion and advertising apply to social media influencers, including those promoting crypto assets and other high-risk products. The cumulative regulatory pressure across these jurisdictions points toward a broader global shift in how governments plan to handle financially influential online personalities.
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