In a significant crackdown on 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 move aims to counter the rising tide of scams that exploit the speed of transactions. The Financial Services Commission and Financial Supervisory Service have introduced these new rules, thereby eliminating the discretion previously held by exchanges to waive holding periods, as reported by local news sources. Historically, exchanges had set their own criteria for exceptions to maintain swift trading, which fraudsters would then learn and exploit to coach victims into bypassing these safeguards.
Voice phishing scams typically involve convincing victims to quickly convert cash to cryptocurrency and transfer it within minutes. Even brief delays can disrupt these scams by providing victims with time to reconsider or allowing alerts to emerge before funds are withdrawn. Under the new regulations, exchanges are required to apply uniform criteria for 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 must enhance identity verification processes and monitor fund flows more rigorously. This development signifies a transition from industry-driven security measures to a standardized national approach. In contrast, markets like the U.S.
and Europe often have withdrawal holds in place, but these are determined by individual companies, with some exchanges even allowing users to set personal timelocks to prevent unauthorized withdrawals. The South Korean regulators have not yet responded to requests for further commentary.