In a bid to combat the rising incidence of voice phishing scams, South Korean financial authorities have mandated that all domestic cryptocurrency exchanges implement a unified and stringent system for managing withdrawal delays. This move aims to thwart scams that exploit the speed of transactions.
Previously, exchanges had the discretion to allow users to bypass holding periods, but this has now been standardized to prevent fraudsters from exploiting these exceptions. The new rules, announced by the Financial Services Commission and Financial Supervisory Service, dictate that exchanges apply consistent criteria when evaluating withdrawal exceptions, including account history, transaction patterns, and unusual behavioral changes. As a result, fewer than 1% of users are expected to be eligible for immediate withdrawals. Furthermore, exchanges are required to enhance identity verification processes and closely monitor fund movements.
This shift from industry-led security measures to a nationwide standard is a significant development in the fight against phishing scams. Unlike other markets, such as the U.S.
and Europe, where withdrawal holds are typically set by individual companies, South Korea's approach marks a more centralized effort to combat fraud.