In a significant move to combat voice phishing scams, South Korea's financial regulatory bodies have introduced a unified, stringent system for delaying cryptocurrency withdrawals across all domestic exchanges. This measure aims to counter the surge in scams that exploit the speed of transactions. Previously, exchanges had the discretion to allow users to bypass holding periods, but this flexibility has been removed.
The new rules, announced by the Financial Services Commission and Financial Supervisory Service, mandate that exchanges apply uniform criteria for evaluating withdrawal exceptions, including account history, transaction patterns, and unusual behavioral changes. It is anticipated that less than 1% of users will meet the criteria for immediate withdrawals. Furthermore, exchanges are required to enhance identity verification processes and closely monitor fund movements.
This shift towards a nationally standardized approach differs from practices in markets like the U.S. and Europe, where withdrawal holds are more commonly determined by individual companies. Some exchanges in these markets even offer users the option to set personal timelocks to prevent unauthorized withdrawals.
The regulatory bodies behind this move in South Korea have not provided additional comments at this time.