South Korea moves to require crypto, stock influencers to disclose holdings: Report
A proposed law would require online investment influencers to reveal their holdings and paid promotions, with penalties potentially comparable to market manipulation violations.
South Korea is reportedly preparing new rules that would force social-media personalities promoting cryptocurrencies and stocks to reveal what they own and whether they are being paid.
Democratic Party lawmaker Kim Seung-won, a member of the National Assembly’s Political Affairs Committee, is drafting amendments to the Capital Market and Financial Investment Business Act and the Act on the Protection of Virtual Asset Users, according to a report from Korean-language business news website Herald Business.
Under the proposal, individuals who repeatedly offer advice or receive compensation to encourage the public to buy or sell financial products or virtual assets must disclose the compensation received and the type and quantity of assets they hold. The requirement would apply to advice delivered through publications, online communications and broadcasts, with detailed criteria to be set by presidential decree.