South Korea Democratic Party seeks asset disclosure for crypto influencers over manipulation risks
South Korea Democratic Party has drafted a bill requiring financial influencers to disclose their personal asset holdings and compensation. The initiative was introduced by Rep. Kim Seung-won, a member of the National Assembly Political Affairs Committee. The proposed amendments would revise the Capital Markets and Financial Investment Act as well as the Virtual Asset User Protection Act.
The bill targets individuals who regularly provide investment advice on stocks and crypto assets through social media while receiving compensation. Herald Economy reported the development, citing parliamentary sources.
The legislation would require influencers to disclose the type and volume of financial investment products and virtual assets they hold. Lawmakers say the measure aims to reduce conflicts of interest and protect retail investors. The initiative comes amid growing influence of finfluencers online and a rise in complaints over opaque investment recommendations.
Regulatory mechanism and potential sanctions
The amendments would apply to posts, broadcasts and other content capable of influencing investment decisions or asset prices. Specific criteria would be defined by presidential decree. Violations could face penalties comparable to market manipulation or insider trading. Lawmakers argue that some influencers provide misleading information while benefiting from undisclosed positions.
Kim said such influence can cause unpredictable losses for investors. The bill also covers virtual assets, expanding oversight to the crypto market. South Korea is seeking to align supervision of traditional and digital investments.
Rising violations and global context
According to the Financial Supervisory Service, the number of registered quasi-investment advisers rose from 132 in 2018 to 1,724 in 2024, an increase of more than 13 times in six years. Regulators attribute the surge to unlicensed advisory activity on social media. Authorities have flagged cases involving false advertising, price manipulation and misleading information.
Similar measures are being enforced abroad. In the United Kingdom, the Financial Conduct Authority requires prior approval of financial promotions. In the United States, the Securities and Exchange Commission and FINRA impose fines and sanctions on influencers for violations. South Korea is following a broader global trend of tightening oversight of investment-related online content. Platforms hosting such content may face stricter moderation requirements, while crypto projects could encounter tighter marketing rules.
Read also: South Korea to tighten crypto regulations after Bithumb incident
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