South Korea Lawmakers Draft New Cryptocurrency Disclosure Rules to Regulate Social Media Influencers in Seoul

If you’ve spent any time on YouTube, Instagram or crypto-heavy Telegram channels, you’ll know the type — polished personalities promising insight into the next breakout token or “undervalued” stock.

Now, South Korea looks ready to tighten the screws on that world.

Lawmakers in Seoul are reportedly working on new rules that would require social media figures who promote cryptocurrencies or shares to come clean about what they own — and whether they’re being paid to talk.

The proposal is being drafted by Kim Seung-won of the Democratic Party of Korea, who sits on the National Assembly’s Political Affairs Committee.

At the heart of it is a simple idea: if you’re nudging the public to buy or sell something, you should disclose your own financial stake in the game.

What the Proposed Law Would Actually Do

According to local reports, amendments are being prepared to strengthen both the Capital Market and Financial Investment Business Act and the Act on the Protection of Virtual Asset Users.

Under the draft, anyone who repeatedly gives investment advice or receives money to encourage trading in stocks or virtual assets would need to disclose two key things:

• The compensation they receive

• The type and quantity of assets they personally hold

And this wouldn’t just apply to formal research notes or paid newsletters.

The disclosure rule would stretch across publications, livestreams, social media posts and broadcasts.

In other words, if you’re influencing markets through a phone camera, the law could still apply.

The fine print — including who qualifies and how often advice must be given to trigger the rule — would be spelled out later through a presidential decree.

Penalties for violations are expected to be tough, potentially aligned with punishments for insider trading or market manipulation. That’s a serious signal.

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Why Lawmakers Are Worried About “Finfluencers”

Kim has reportedly raised concerns about so-called “fin-influencers” — online figures who may not be licensed advisors but wield enormous influence over retail investors.

His warning is straightforward: when someone with a big following pushes a financial product without revealing they’re being paid — or that they already hold a large position — that creates a conflict of interest.

And in volatile markets like crypto, that can mean sudden losses for everyday investors.

The numbers appear to back up the concern.

Data from the Financial Supervisory Service suggests complaints involving quasi-investment advisory businesses have exploded in recent years, jumping from just over a hundred cases in 2018 to well over a thousand in 2024.

South Korea is no stranger to speculative surges.

During the 2021 crypto boom, retail participation in digital assets surged, particularly among younger investors.

That wave brought innovation — but it also brought rug pulls, pump-and-dump schemes and highly publicized exchange collapses.

Regulators have been tightening oversight ever since.

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Part of a Bigger Global Crackdown

South Korea isn’t acting in isolation. Around the world, regulators have begun to treat online investment promotion less like harmless opinion-sharing and more like regulated financial advertising.

In the UK, the Financial Conduct Authority requires financial promotions to receive proper approval before publication.

Across the Atlantic, the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority have pursued enforcement actions against influencers who failed to disclose paid promotions.

In Europe, Italy’s market regulator Commissione Nazionale per le Societa e la Borsa recently echoed guidance from the European Securities and Markets Authority making clear that EU securities and advertising rules apply fully to social media personalities promoting crypto or high-risk investments.

The message globally is consistent: influence equals responsibility.

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The Tension Between Free Speech and Investor Protection

Of course, there’s a balancing act here. Social media thrives on commentary and personal opinion.

Not every crypto enthusiast with a podcast considers themselves an investment advisor.

But regulators are increasingly drawing a line between casual opinion and repeated, compensated promotion.

When audiences number in the hundreds of thousands — or millions — the potential market impact becomes harder to ignore.

South Korea’s approach suggests it wants transparency rather than prohibition.

Influencers wouldn’t necessarily be banned from speaking.

They would simply need to show their cards.

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What’s Next?

The draft amendments still need to move through the legislative process.

Debate in the National Assembly could refine definitions, clarify thresholds and adjust penalty levels.

If passed, implementation details would follow via presidential decree, meaning the exact compliance framework could take months to finalize.

In the meantime, influencers operating in South Korea — especially those active in crypto and small-cap stocks — may want to start reviewing their disclosure practices.

If the direction of travel globally is any clue, transparency standards are only going to get stricter.

For retail investors, the shift could mean clearer signals about who’s genuinely sharing insight — and who’s quietly cashing in.

Summary

South Korea is reportedly preparing legislation that would require social media personalities who promote stocks or cryptocurrencies to disclose both their compensation and personal holdings.

The proposal, led by Democratic Party lawmaker Kim Seung-won, aims to curb conflicts of interest and protect retail investors from undisclosed promotional activity.

With similar regulatory moves underway in the UK, US and EU, the initiative reflects a broader global effort to impose transparency and accountability on financial influencers in the digital age.