In a bid to curb the rising incidence of voice phishing scams, South Korea's financial regulatory bodies have mandated the implementation of a uniform withdrawal delay system across all domestic cryptocurrency exchanges. This move eliminates the discretion previously afforded to exchanges to set their own rules for bypassing holding periods, a loophole that fraudsters had exploited to coach victims into swiftly transferring funds. The new rules, announced by the Financial Services Commission and Financial Supervisory Service, require exchanges to apply uniform criteria when reviewing withdrawal exceptions, including account history, transaction patterns, and unusual behavioral changes. As a result, it is anticipated that less than 1% of users will be eligible for instant withdrawals.
Furthermore, exchanges are required to enhance identity verification and closely monitor fund flows. This shift towards a national standard marks a departure from the previously industry-led approach to safeguards, differing from the practices in markets like the US and Europe, where withdrawal holds are typically set by individual firms, with some even allowing users to set personal timelocks to prevent unauthorized withdrawals.