Crypto: South Korea is preparing new regulations that would require influencers promoting cryptocurrencies and stocks to disclose their own investments and information about paid partnerships. The legislative proposal responds to the rapid growth of influence wielded by so-called “finfluencers,” who shape public investment decisions often without clear disclosure of their own motivations.
The proposal is backed by Democratic Party lawmaker Kim Seung-won, a member of the parliamentary committee on political affairs. He is preparing amendments to the Capital Markets Act and the Financial Investment Services Act, as well as the Virtual Asset User Protection Act.
If the proposal passes, individuals who repeatedly provide investment recommendations or are paid for promoting financial products and cryptocurrencies will be required to disclose the amount of compensation and the type and quantity of assets they hold.
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The Obligation May Apply to Content Across Platforms
The regulation would apply to investment recommendations disseminated through publications, online communication, and broadcasting. Detailed rules and specific parameters are to be subsequently established by presidential decree.
Violations of the rules could be assessed as seriously as market manipulation or insider trading. This means potentially high fines or other sanctions.
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Regulation Responds to Growing Investor Risks
The goal of the initiative is to reduce conflicts of interest and increase transparency in online investment content. According to Kim Seung-won, influencers increasingly provide investment advice to the general public from a position of significant public influence, without it being clear whether they are being paid for their recommendations or whether they themselves hold the assets they are promoting.
According to him, this creates a risk of providing inappropriate or incomplete information that could lead to unpredictable losses for investors.
Data from South Korea’s Financial Supervisory Service regulator confirm this trend. The number of reports concerning so-called quasi-investment advisors—entities providing general investment advice through media—rose from 132 cases in 2018 to 1,724 in 2024.
Similar Trends Pursued by Regulators Worldwide
South Korea is not alone in targeting finfluencers. Regulators in other countries are gradually tightening rules for online investment promotion.
In the United Kingdom, financial advertising must obtain prior approval from the Financial Conduct Authority. In the United States, institutions such as the Securities and Exchange Commission and Financial Industry Regulatory Authority have issued fines for undisclosed paid promotions.
The topic is also gaining prominence in Europe. Italian regulator CONSOB recently circulated new guidelines from the European Securities and Markets Authority (ESMA), according to which investment advertising rules fully apply to social media influencers, including those promoting cryptocurrencies and other risky assets.
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A Trend That Could Transform Crypto Marketing
The proposed regulation reveals a broader trend—investment content on social media is no longer viewed as informal opinion and is increasingly treated as financial advertising subject to the same obligations as traditional media.
For the cryptocurrency sector, which has long relied on community and influencers, this could represent a significant shift. Transparency regarding personal investments and paid collaborations could increase trust, but at the same time, it could restrict some marketing strategies that have been common so far.
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