Synopsis: South Korea proposes bill forcing crypto/stock influencers to disclose holdings and paid promotions. Violations face market manipulation penalties to curb pump-and-dump schemes and protect investors.
A new bill could make financial influencers legally liable for hiding paid promotions or undisclosed assets.
South Korea is taking aim at financial influencers. A proposed law would force online personalities who promote stocks and cryptocurrencies to reveal what they own. They would also need to disclose whether brands are paying them. Violations could carry punishments as serious as market manipulation charges.
The bill is being drafted by Kim Seung-won, a Democratic Party lawmaker. He sits on the National Assembly’s Political Affairs Committee. The Korean business outlet Herald Business first reported the story on February 25, 2026.
What the Proposed Law Would Require
Kim is drafting changes to two key laws. The first covers traditional financial products like stocks. The second is the Act on the Protection of Virtual Asset Users. That law took effect in 2024 to regulate crypto markets.
Under the proposal, influencers who repeatedly advise the public on buying or selling assets must act. They must disclose what types and quantities of assets they personally hold. They must also reveal any compensation they receive for promotions.
The rules would cover advice delivered through social media, publications, online platforms, and broadcasts. A presidential decree would set the detailed criteria for compliance. Additionally, the Financial Services Commission could issue further guidelines.
Lawmaker Raises Alarm Over ‘Finfluencer’ Risks
Kim said so-called “finfluencers” are growing rapidly in South Korea. These are social media figures who offer investment advice without formal licensing. Yet their reach and influence over ordinary investors is enormous.
“These individuals are providing inappropriate information and creating conflicts of interest,” Kim reportedly said. Furthermore, he warned that their opinions carry significant public weight. This causes unpredictable losses for everyday investors, he added.
The numbers back up his concern. Reports involving quasi-investment advisors jumped from 132 in 2018 to 1,724 in 2024. That data comes from South Korea’s Financial Supervisory Service. The sharp rise highlights how fast the problem has grown.
Penalties Could Be Severe
The proposed bill does not treat violations lightly. Influencers who break the rules could face penalties similar to those for market manipulation or insider trading. These are among the most serious offenses under South Korea’s capital markets rules.
Penalties could include heavy fines or even criminal charges. As a result, the stakes for non-compliance would be very high. The goal is to deter deceptive practices like “pump-and-dump” schemes. These happen when influencers hype assets they own, then sell after prices rise.
The bill is still in the drafting stage. Kim’s office may formally introduce the amendments as early as late February 2026. No final passage has occurred yet.
Also Read: Crypto VC Framework Ventures Takes $45M Stake in Better.com to Tokenise Mortgages
Global Regulators Are Cracking Down Too
South Korea is not acting alone. Regulators around the world are tightening rules on financial influencers. Moreover, the trend is accelerating across major markets.
In the United Kingdom, the Financial Conduct Authority requires prior approval for all financial promotions. In the United States, the SEC and FINRA have issued fines for undisclosed paid promotions. Both agencies have taken action against influencers who hide sponsorships.
Meanwhile, Italy’s market regulator CONSOB recently shared new guidance from the European Securities and Markets Authority. The guidance makes clear that EU investment and advertising rules apply fully to social media finfluencers. This includes those promoting crypto and other high-risk products.
If South Korea passes this bill, it would become one of the strictest disclosure regimes for influencers in any major market. Consequently, it could reshape how crypto and stock promotions operate on social platforms across the country.
Written By Fazal Ul Vahab C H
