In a significant escalation of its anti-phishing campaign, South Korea's financial regulatory bodies have mandated that all domestic cryptocurrency exchanges implement a unified, stringent system for delaying withdrawals. This move aims to counter the rising tide of voice phishing scams, which often rely on rapid transaction execution.
The Financial Services Commission and the Financial Supervisory Service have introduced these new rules, effectively eliminating the discretion that exchanges previously had to allow users to bypass waiting periods, as reported by local news sources. Historically, platforms had established their own rules for exceptions to maintain swift trading. However, fraudsters became adept at exploiting these rules, coaching their victims on how to circumvent them. Voice phishing scams typically involve pressuring victims into converting cash to cryptocurrency and transferring it within a short timeframe.
Even a brief delay can disrupt the scam by providing victims with time to reconsider or allowing alerts to be triggered before funds are withdrawn from an account. Under this new system, exchanges are required to apply uniform criteria when evaluating withdrawal exceptions, including account history, transaction patterns, and abrupt behavioral changes. Officials anticipate that fewer than 1% of users will be eligible for instant withdrawals.
Additionally, platforms must enhance identity verification processes and closely monitor fund transfers. This development signifies a shift from industry-driven security measures to a nationally standardized approach. In contrast, markets such as the U.S.
and Europe often employ withdrawal holds, but these are typically set by individual companies. Some exchanges even permit users to set their own timelocks to prevent unauthorized withdrawals. The South Korean regulatory authorities did not immediately respond to requests for further commentary.