In a bid to combat the rising incidence of voice phishing scams, South Korea's financial regulatory bodies have introduced a unified system for delaying withdrawals across all domestic cryptocurrency exchanges. This move eliminates the discretion previously held by exchanges to allow users to bypass holding periods, as reported by local news sources.
The new rules, announced by the Financial Services Commission and Financial Supervisory Service, aim to counter scams that rely on swift transactions by introducing a standardized system for reviewing withdrawal exceptions based on factors such as account history, transaction patterns, and abrupt changes in user behavior. It is anticipated that less than 1% of users will be eligible for immediate withdrawals under the new criteria.
Additionally, exchanges are required to enhance identity verification processes and closely monitor fund movements. This shift towards a national standard for safeguards marks a significant departure from the previously industry-led approach. Unlike other markets, such as the U.S. and Europe, where withdrawal holds are typically set by individual companies, South Korea's regulators have implemented a cohesive strategy to tackle phishing scams.
The regulatory bodies' decision to standardize withdrawal protocols is expected to have a profound impact on the cryptocurrency landscape in South Korea.