In a significant crackdown on phishing scams, South Korea's financial regulatory bodies have mandated that all local cryptocurrency exchanges implement a uniform, stringent system for delaying withdrawals. This move aims to counter a recent surge in voice phishing scams that exploit the speed of transactions. Previously, exchanges had the discretion to set their own rules for bypassing holding periods, which fraudsters learned to manipulate. By standardizing the criteria for withdrawal exceptions, including account history, transaction patterns, and behavioral anomalies, regulators expect a significant reduction in instant withdrawals, with less than 1% of users qualifying.
Additionally, exchanges are required to enhance identity verification processes and closely monitor fund movements. This shift from industry-led security measures to a nationwide standard differs from practices in markets like the U.S.
and Europe, where withdrawal holds are more commonly determined by individual companies.