South Korea plans to implement a mandatory asset disclosure system for influencers in the cryptocurrency sector

According to The Block, South Korean ruling party lawmaker Kim Seung-won proposed amendments to the Capital Markets Act and the Virtual Asset User Protection Act, requiring influencers (Finfluencers) who provide cryptocurrency investment advice on social media to disclose their personal asset holdings and the compensation they receive.

The proposal aims to enhance market transparency and combat misleading information and self-dealing behavior. According to the proposed legislation, individuals who regularly provide investment advice on social media, mass publications, or broadcasts must publicly disclose the types and amounts of cryptocurrency assets they hold, as well as any compensation related to their promotions. Penalties for violations will reference capital market crimes such as price manipulation.

Kim Seung-won pointed out that this move is a necessary measure to address conflicts of interest and investor harm caused by unregulated social media commentary.