South Korea to Force Crypto Influencers to Disclose Holdings and Promotional Payments

South Korean lawmakers, led by Kim Seung-won of the ruling party, have proposed amendments to the Capital Markets Act and the Virtual Asset User Protection Act that would require social-media financial influencers who regularly recommend cryptocurrencies or stocks to disclose their asset holdings and any payments or benefits received for promotions. The rules would cover livestreams, short videos, blogs and broadcasts and require disclosure of asset types, quantities and sponsorship fees. Penalties for non-compliance could match existing sanctions for unfair trading — including fines and potential criminal charges — and will be tied to market surveillance systems to detect conflicts of interest and deter pump-and-dump schemes. The push follows a sharp rise in unregistered advisory cases (from 132 in 2018 to 1,724 in 2024) and recent market incidents such as a 2026 promotional error at Bithumb. Practical details — including thresholds that define who qualifies as an influencer and enforcement mechanisms — remain under discussion as the bill proceeds through legislative review. Traders should expect increased transparency around influencer promotions, possible short-term volatility in assets pushed by influencers, and stronger enforcement that may reduce coordinated promotional manipulation over time.