DP pushes to mandate asset disclosures for financial influencers…including crypto

The Democratic Party of Korea is pushing a bill that would require financial influencers who recommend investments in stocks and cryptocurrencies to disclose their financial assets.

According to the National Assembly and other sources on the 25th, Rep. Kim Seung-won of the DP is preparing to introduce as the lead sponsor partial amendment bills to the Financial Investment Services and Capital Markets Act and the Act on the Protection of Virtual Asset Users, among others. The key of the amendments is to mandate that influencers who recommend the trading of virtual assets or financial products to a large number of people disclose the types and quantities of virtual assets and financial products they hold.

The scope of application covers acts of providing advice that affects investment decisions or asset values through periodicals, publications, communications, broadcasting and the like. Penalties for violations are said to be under review at a level comparable to existing capital-market unfair trading such as price manipulation and front-running.

The amendments are expected to be introduced as early as this month. An official from Rep. Kim’s office said, “(The amendments) are intended to fill a legislative vacuum,” adding, “We are in the final stages of coordination (on the bill).”