South Korea Cracks Down on Unregulated Crypto Influencers
A South Korean lawmaker has proposed amendments to existing laws in order to regulate social media personalities promoting cryptocurrencies and stocks. The bill, drafted by Kim Seung-won, a member of the National Assembly's Political Affairs Committee, targets two existing laws: the Capital Market and Financial Investment Business Act and the Act on the Protection of Virtual Asset Users.
Under the proposed rules, individuals who provide investment guidance or accept payment to encourage buying or selling financial products or virtual assets would need to disclose compensation received and their personal holdings. This includes advice shared through publications, online platforms, and broadcast media.
The bill aims to address a growing category of online commentators operating outside formal licensing requirements, known as 'fin-influencers'. Kim stated that such individuals have caused financial harm to retail investors.