South Korea proposes mandatory disclosure of asset information by crypto KOLs

Foresight News reported, citing The Korea Herald, that a legislator from South Korea's ruling party has proposed a bill to require key opinion leaders (KOLs) who provide investment advice on cryptocurrencies and other assets to disclose their asset information and any compensation received for promoting cryptocurrencies. The proposal involves amendments to the Capital Markets Act and the Virtual Asset User Protection Act, aiming to enhance investor transparency. According to the proposal, influencers would be required to publicly disclose the types and amounts of personal assets related to the crypto assets and financial products they recommend. Specific requirements will be further detailed by presidential decree. Penalties for violations will be consistent with existing capital market offenses, such as price manipulation and front-running. The proposal stems from concerns over influencers' conflicts of interest and the spread of misleading information, as influencers provide inaccurate information and engage in self-trading on unregulated social media, seriously harming investors' interests.