In a significant move to counter voice phishing scams, South Korea's financial regulatory bodies have mandated the implementation of a unified, stringent system for delaying cryptocurrency withdrawals across all domestic exchanges. This effort aims to thwart scams that exploit swift transaction capabilities. Previously, exchanges had the discretion to establish their own rules for bypassing holding periods, which fraudsters would then exploit by coaching victims on how to circumvent these rules. The new rules, announced by the Financial Services Commission and Financial Supervisory Service, remove this discretion and require exchanges to apply uniform criteria for evaluating withdrawal exceptions.
These criteria include a user's account history, transaction patterns, and any sudden behavioral changes. It is anticipated that less than 1% of users will be eligible for immediate withdrawals under the new system.
Furthermore, exchanges are required to enhance identity verification processes and closely monitor fund flows. This shift from industry-led security measures to a standardized national approach is notable, especially when compared to other markets like the U.S.
and Europe, where withdrawal holds are common but determined by individual companies. Some international exchanges even offer users the option to set personal timelocks to prevent unauthorized withdrawals.
The regulatory bodies in South Korea have not provided additional comments on the matter at this time.