In a significant crackdown on phishing scams, South Korea's financial authorities have mandated that all local cryptocurrency exchanges implement a unified system for delaying withdrawals. This move aims to counter the rising tide of voice phishing scams that capitalize on swift transaction processing. According to local news reports, the Financial Services Commission and the Financial Supervisory Service have introduced these new rules, thereby eliminating the discretion exchanges previously had to allow users to bypass holding periods.
Historically, crypto platforms had set their own rules for exceptions to facilitate faster trading, but fraudsters learned to exploit these rules, coaching their victims on how to circumvent them. Voice phishing scams typically involve convincing victims to quickly convert their cash into cryptocurrency and transfer it within a short timeframe.
Even brief delays can disrupt such scams by giving victims time to reconsider or allowing alerts to be raised before funds are transferred out of an account. Under the new regulations, exchanges are required to apply uniform criteria when evaluating withdrawal exceptions, including factors such as account history, transaction patterns, and sudden behavioral changes.
Officials anticipate that fewer than 1% of users will be eligible for immediate withdrawals. Additionally, platforms must enhance identity verification processes and closely monitor fund movements. This development signifies a transition from industry-driven security measures to a nationwide standard.
In contrast, markets like the U.S. and Europe often have withdrawal holds in place, but these are set by individual companies. Some exchanges even offer users the option to set their own timelocks to prevent unauthorized withdrawals. The South Korean regulatory bodies did not provide immediate comment on the matter when contacted.