In a significant move to combat voice phishing scams, South Korea's financial regulatory bodies have mandated that all domestic cryptocurrency exchanges implement a unified, stringent system for delaying withdrawals. This aims to counter the rising tide of scams that exploit the speed of transactions. The Financial Services Commission and Financial Supervisory Service have announced these new rules, which eliminate the discretionary powers previously held by exchanges to waive holding periods, as reported by local news sources.
Historically, platforms had set their own rules for exceptions to maintain rapid trading, which fraudsters learned to circumvent by coaching victims on how to bypass these exceptions. Voice phishing scams typically coerce victims into converting money into cryptocurrency and transferring it within minutes.
Even brief delays can disrupt these scams by giving victims time to reflect or allowing alerts to emerge before funds are withdrawn. Under the new framework, exchanges are required to apply uniform criteria when evaluating withdrawal exceptions, including account history, transaction patterns, and abrupt behavioral changes. Officials anticipate that less than 1% of users will be eligible for immediate withdrawals. Furthermore, platforms are obligated to enhance identity verification processes and closely monitor fund transfers.
This shift signifies a move from industry-driven security measures to a nationwide standard. In contrast to other markets like the U.S. and Europe, where withdrawal holds are common but determined by individual companies, some exchanges even allow users to set personal timelocks to prevent unauthorized withdrawals.
The South Korean regulators have not immediately responded to requests for additional commentary.