South Korea’s ruling political party has introduced a bill requiring social media “finfluencers” to disclose their personal asset holdings and any compensation received when promoting cryptocurrencies.
According to a report from local news outlet Herald Business, Kim Seung-won, a Democratic Party lawmaker and member of the National Policy Committee, proposed amendments to the Capital Markets Act and the Virtual Asset User Protection Act.
Aimed at improving transparency for investors, the amendments target individuals who regularly offer investment advice or recommendations on crypto and other assets through social media, mass publications, or broadcasts, the report said.
Influencers would be required to reveal any compensation tied to their recommendations, along with the types and quantities of crypto assets and financial products they personally hold. More precise details on the requirements would be specified through a presidential decree, according to the report.
Penalties for violations would align with existing measures applied to capital market offenses such as price manipulation and front-running.
Kim cited growing concerns over conflicts of interest and the spread of misleading information linked to influential but unregulated social media commentary, the report said. He added that some influencers circulate inaccurate information and engage in self-dealing, thereby harming investors.
The initiative reflects broader international efforts to regulate financial influencers. The UK’s Financial Conduct Authority (FCA) already restricts the promotion of financial products to entities with prior approval. More specifically, the FCA has laid out financial promotion rules for crypto assets in 2023 to ban misleading advertising of risky assets.
The U.S. Securities and Exchange Commission has also fined several celebrities and influencers for promoting crypto assets without disclosing payments, with major cases involving Kim Kardashian and NBA hall-of-famer Shaquille O’Neal.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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