The crypto market in Seoul may be a little unclear about who is talking and why. According to recent reports, lawmakers in South Korea are drafting laws that would force people offering investment tips on social media to disclose what they own and what they are paid to promote.
Influencer Crypto Holdings Must Be Public
Reports say the move could include anyone who repeatedly recommends stocks or crypto live, short videos, blogs or broadcasts, and could require disclosure of asset types, prices and any payments related to the promotion. That includes both token holdings and publicly listed shares.
The proposal is led by Kim Seung-won, who has pushed for amendments to the Market Markets Act and the Virtual Property User Protection Act, according to multiple outlets. Laws like these are intended to flag conflicts of interest where someone might bid up a commodity and then sell at the resulting price increase.
Who Will Face Penalties
Reports note that penalties for violations may be similar to existing penalties for unfair trade, meaning fines and possible criminal charges for the most serious cases. That legal weight is seen as a way to prevent pump-and-dump style inflation that could harm small investors.
Many observers point out that government officials in the country are already disclosing crypto holdings to ethical bodies, so this move is an extension of transparency practices established in the private communications sector.
The move comes as regulators around the world are exploring new ways to ensure cyberbullying and limit investor harm.
Crypto: Practical Questions Remain
How the rules will be enforced is still an open question. Reports say lawmakers want to link laws and market surveillance programs and give regulators clearer powers to investigate suspicious activity.
It will probably take time to work out the details on the limits of who qualifies as a facilitator, and what exact data should be published.
What This Means for Creators and Users
Creators who earn through promotions may need to change the way they post. Some will disclose voluntarily. Others may refrain from recommending certain goods to avoid general reports.
Ordinary investors can benefit if conflicts of interest are easier to spot, but the rules will only help if they are enforced.
Reports have revealed that the bill is part of a major strengthening of oversight by agencies including the Financial Supervisory Service, which has become more active after recent market incidents.
The goal is clear: to reduce hidden promotions and give crypto investors and traders clear signals about who should benefit from the recommendation.
Featured image from Pexels, chart from TradingView
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