In a bid to combat the rising tide of voice phishing scams, South Korea's financial regulatory bodies have introduced a unified withdrawal delay system for all domestic cryptocurrency exchanges. This move eliminates the discretionary power previously held by exchanges to waive holding periods, as reported by local news sources. The new rules, announced by the Financial Services Commission and Financial Supervisory Service, aim to thwart phishing scams that rely on swift transactions. Previously, exchanges had their own rules for exceptions, which fraudsters would exploit by coaching victims on how to bypass these rules.
Voice phishing scams typically involve deceiving victims into converting cash to cryptocurrency and transferring it quickly. By introducing a delay, even if brief, the scam can be disrupted, giving victims time to reconsider or allowing alerts to be triggered before funds are transferred. Under the new system, exchanges will apply uniform criteria for reviewing withdrawal exceptions, including account history, transaction patterns, and sudden behavioral changes.
It is anticipated that less than 1% of users will be eligible for instant withdrawals. Additionally, exchanges are required to enhance identity verification and closely monitor fund flows. This shift from industry-led security measures to a national standard is significant.
In contrast, markets like the U.S. and Europe have withdrawal holds in place, but these are set by individual companies, with some exchanges even allowing users to set their own transaction time locks to prevent unauthorized withdrawals. The South Korean regulators have not provided further comment on the matter at this time.