In a significant move to combat voice phishing scams, South Korea's financial regulatory bodies have introduced a unified system for delaying withdrawals across all domestic cryptocurrency exchanges. This new framework eliminates the discretion previously held by exchanges to allow users to bypass holding periods, as reported by local news sources. The Financial Services Commission and Financial Supervisory Service have mandated that all exchanges adopt a strict, standardized system to delay withdrawals, aiming to thwart the surge in scams that exploit speed.
Previously, exchanges had set their own rules for exceptions, which fraud groups had learned to navigate, coaching victims on how to bypass these rules. Voice phishing scams typically involve convincing victims to quickly convert cash into cryptocurrency and transfer it within minutes. By introducing a delay, even if brief, the scam can be interrupted, giving victims time to reconsider or allowing alerts to be raised before funds are transferred out of an account.
Under the new regulations, exchanges are required to apply uniform criteria when evaluating withdrawal exceptions, including account history, transaction patterns, and sudden behavioral changes. It is anticipated that less than 1% of users will qualify for immediate withdrawals. Additionally, exchanges must enhance identity verification processes and closely monitor fund flows. This move signifies a transition from industry-led safety measures to a nationally standardized approach.
In contrast, other markets like the U.S. and Europe have withdrawal holds that are set by individual companies, with some exchanges even allowing users to set their own timelocks to prevent unauthorized withdrawals. The South Korean regulators have not immediately responded to requests for further commentary.