In a significant crackdown on voice phishing scams, South Korea's financial regulatory bodies have mandated the implementation of a unified, stringent withdrawal system across all domestic cryptocurrency exchanges. This move aims to hinder the rapid execution of phishing attacks, which often rely on swift transactions.
The Financial Services Commission and the Financial Supervisory Service have announced these new rules, effectively eliminating the discretionary powers previously held by exchanges to waive holding periods, as reported by local news sources. Historically, platforms had established their own sets of rules for exceptions, allowing for faster trading. However, fraudulent groups had learned to exploit these rules, coaching their victims on how to bypass them. Voice phishing scams typically involve convincing victims to quickly convert cash into cryptocurrency and transfer it within minutes.
Even brief delays can disrupt these scams by providing victims with time to reconsider or allowing alerts to surface before funds are transferred out of an account. Under the new regulations, exchanges are required to apply uniform criteria when assessing withdrawal exceptions, including factors such as account history, transaction patterns, and abrupt changes in behavior. It is anticipated that less than 1% of users will be eligible for instant withdrawals. Furthermore, platforms are obliged to enhance identity verification processes and closely monitor fund flows.
This development signifies a transition from industry-driven safeguards to a nationally standardized approach. In contrast, markets like the U.S. and Europe have common withdrawal holds, but these are set by individual companies.
Some exchanges even offer users the option to set personal timelocks to prevent unauthorized withdrawals. The South Korean regulatory bodies did not provide immediate comment when approached by CoinDesk for further information.