In a bid to combat a rising wave of voice phishing scams, South Korea's financial authorities have mandated that all local cryptocurrency exchanges implement a uniform, stringent system for delaying withdrawals. This move aims to thwart scams that rely on rapid transaction processing. Previously, exchanges had the discretion to allow users to bypass holding periods, but this flexibility has been removed.
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, less than 1% of users are expected to be eligible for instant withdrawals. Furthermore, exchanges must enhance identity verification processes and closely monitor fund transfers. This development marks a significant shift from self-regulatory measures to a standardized national approach, differing from practices in markets like the U.S.
and Europe, where withdrawal holds are typically set by individual companies.