South Korea is preparing new rules that will require social media influencers promoting cryptocurrencies and stocks to disclose their assets and whether they received payments. Democratic Party lawmaker Kim Seung-won, as a member of the National Assembly’s Political Affairs Committee, is drafting amendments to the Capital Market and Financial Investment Business Act and the Virtual Asset User Protection Act.
Kim Seung-won, Democratic Party of Korea member. Source: National Assembly Library
Purpose of South Korea’s Finfluencer Regulations
The bill was prepared to reduce conflicts of interest created by finfluencers and increase transparency. Kim Seung-won stated that these individuals provide inappropriate information and lead to investor losses. Individuals who repeatedly give advice or receive paid incentives must disclose the amount of fees received, the type and quantity of assets they hold through publications, online communications, and broadcasts; details will be determined by presidential decree.
Mandatory Disclosure Details of the Bill
Penalties similar to those for market manipulation or insider trading may be applied for violations. This is critically important for influencers promoting popular crypto assets like ALT detailed analysis. Transparency will protect investors from misleading promotions.
Rise in Financial Complaints
According to Financial Supervisory Service data, complaints regarding entities giving investment advice through media (QIAB) rose from 132 in 2018 to 1,724 in 2024. This increase demonstrates the urgency of the regulation and is one of the factors increasing volatility in the crypto market.
Comparison with Global Finfluencer Regulations
- United Kingdom Financial Conduct Authority (FCA): Introduces approval requirement.
- US SEC and FINRA: Applies fines.
- Italy CONSOB: Covers social media finfluencers with ESMA guidance.
Cointelegraph requested comment from Kim but received no response (February 25, 2026).
Regulatory Impact on ALT and Market Volatility
South Korea’s strict crypto regulations may affect coins traded with an Asia focus like ALT. Current price: $0.01, 24h change: +3.87%. RSI 33.61 indicates oversold signal, trend is downward (Supertrend Bearish, EMA 20: $0.0084).
ALT Technical Analysis: Critical Levels
These regulations may reduce pump-dump risks in speculative coins. Here are the current levels:
| Level | Price | Score | Distance | Sources |
|---|---|---|---|---|
| S1 | $0.0069 | 70/100 ⭐ STRONG | -8.12% | Fibo 0.000, Donchian Lower |
| S2 | $0.0075 | 66/100 ⭐ STRONG | -0.13% | LVN 1, MACD Cross |
| R1 | $0.0077 | 60/100 ⭐ STRONG | +2.53% | R1, Prev Day High |
| R2 | $0.0137 | 58/100 moderate | +82.42% | Fibo 0.618, HVN 4 |
Check ALT futures for ALT futures. Regulations can create a healthy market in the long term.
Source: https://en.coinotag.com/south-korea-mandates-transparency-for-finfluencers
