In a significant crackdown on voice phishing scams, South Korea's financial regulatory bodies have mandated that all domestic cryptocurrency exchanges implement a uniform, stringent system for delaying withdrawals. This move 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Previously, exchanges had the discretion to allow users to bypass holding periods, but this has been withdrawn. The new rules, announced by the Financial Services Commission and Financial Supervisory Service, will apply the same criteria to all withdrawal exceptions, including account history, transaction patterns, and sudden behavioral changes. As a result, fewer than 1% of users are expected to be eligible for instant withdrawals.
Furthermore, exchanges are required to enhance identity verification processes and closely monitor fund movements. This shift from industry-led safeguards to a national standard differs from practices in other markets, such as the U.S.
and Europe, where withdrawal holds are typically set by individual firms, and some even allow users to set personal timelocks for added security.