In a bid to curb the rising tide of voice phishing scams, South Korea's financial regulatory bodies have mandated the implementation of a unified, stringent withdrawal delay system across all domestic cryptocurrency exchanges. This move aims to thwart scams that exploit the speed of transactions. Previously, exchanges had the discretion to allow users to bypass holding periods, but this has now been removed.
The new rules, announced by the Financial Services Commission and Financial Supervisory Service, require exchanges to apply uniform criteria when evaluating withdrawal exceptions, including account history, transaction patterns, and sudden behavioral changes. As a result, fewer than 1% of users are expected to qualify for immediate withdrawals. Additionally, exchanges must enhance identity verification processes and closely monitor fund movements.
This shift from industry-led security measures to a nationwide standard differs from practices in other markets, such as 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.