In a significant crackdown on voice phishing scams, South Korea's financial regulatory bodies have mandated that all local cryptocurrency exchanges implement a unified, stringent system for delaying withdrawals. This move aims to combat the growing surge of scams that exploit the speed of transactions. Previously, exchanges had the discretion to set their own rules for bypassing holding periods, which fraudsters had learned to navigate.
The new rules, announced by the Financial Services Commission and Financial Supervisory Service, require exchanges to apply consistent criteria when evaluating withdrawal exceptions, including account history, transaction patterns, and unusual behavioral changes. As a result, officials anticipate that less than 1% of users will be eligible for instant withdrawals. Furthermore, exchanges are now required to enhance identity verification processes and closely monitor fund movements.
This shift from industry-driven safeguards to a nationwide standard differs from practices in other markets, such as the U.S. and Europe, where withdrawal holds are commonly implemented but determined by individual companies.
Some exchanges in these regions even allow users to set personal timelocks to prevent unauthorized withdrawals. The South Korean regulators have not provided additional comments on the matter at this time.