South Korea Weighs Bill Requiring Finfluencers to Disclose Crypto Holdings

The South Korean government is considering a bill that would require financial influencers to disclose their cryptocurrency holdings. The proposed amendment to the Virtual Asset User Protection Act aims to prevent conflicts of interest and protect retail investors who follow financial advice from social media personalities.

However, critics argue that mandatory disclosure could infringe on individuals' right to control their personal information, as protected under South Korea's Personal Information Protection Act. They also worry that it may expose finfluencers to security risks such as hacking or targeted scams.

The bill was introduced by Democratic Party lawmaker Kim Seung-won and is currently under review by the National Assembly's Political Affairs Committee. The committee has raised concerns about the definition of finfluencers subject to the requirement, which could lead to inconsistent application and potential legal challenges.

South Korea has been proactive in regulating the cryptocurrency market, having enacted the Virtual Asset User Protection Act in 2023 to safeguard investors. Similar regulatory efforts are emerging globally, with the U.S. Securities and Exchange Commission and European authorities also scrutinizing social media financial advice.