In a significant crackdown on phishing scams, 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 rapid rise in voice phishing scams that exploit the speed of transactions. Previously, exchanges had the discretion to allow users to bypass holding periods, but this has now been removed.
The new rules, announced by the Financial Services Commission and Financial Supervisory Service, require exchanges to apply uniform criteria when considering withdrawal exceptions. These criteria include account history, transaction patterns, and any sudden changes in user behavior. It is anticipated that less than 1% of users will be eligible for instant withdrawals under the new system. Additionally, exchanges are required to enhance identity verification processes and closely monitor fund transfers.
This shift towards a national standard marks a departure from the previously industry-led approach to safeguards. Unlike some other markets, such as the U.S.
and Europe, where withdrawal holds are common but determined by individual companies, South Korea is adopting a more centralized approach. Some exchanges in other markets even allow users to set their own transaction locks to prevent unauthorized withdrawals. The regulatory bodies in South Korea have not provided further comment on the new measures at this time.