In a significant effort to combat voice phishing scams, South Korea's financial authorities have instructed all local cryptocurrency exchanges to implement a unified, stringent system for delaying withdrawals. This move aims to counter the increasing incidence of scams that exploit the speed of transactions. The Financial Services Commission and Financial Supervisory Service have introduced these new rules, effectively eliminating the discretion exchanges previously had to allow users to bypass waiting periods, as reported by local news sources. Historically, platforms had set their own rules for exceptions to maintain swift trading, which fraudsters learned to circumvent by coaching their victims on how to bypass these rules.
Voice phishing scams typically manipulate victims into converting money into cryptocurrency and transferring it within minutes. Even a brief delay can disrupt such scams by giving victims time to rethink or allowing alerts to appear before funds are transferred out of an account. Under the new regulations, exchanges are required to apply uniform criteria for evaluating withdrawal exceptions, including account history, transaction patterns, and abrupt changes in behavior.
Officials anticipate that less than 1% of users will be eligible for immediate withdrawals. Additionally, platforms must enhance identity verification processes and closely monitor fund transfers. This shift reflects a move from industry-driven security measures 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 allow users to set personal timelocks to prevent unauthorized withdrawals. The South Korean regulators have not yet responded to requests for further commentary.