In a significant escalation of its anti-phishing measures, South Korea's financial regulatory bodies have mandated that all domestic cryptocurrency exchanges implement a unified, stringent system for managing withdrawal delays. This move aims to counter the rising incidence of voice phishing scams, which exploit the speed of transactions. According to local news sources, the Financial Services Commission and Financial Supervisory Service have introduced these new rules, thereby eliminating the discretion previously held by exchanges to exempt users from waiting periods. Historically, platforms had established their own criteria for exceptions to facilitate faster trading.
However, fraudsters adapted to these rules, instructing their victims on how to circumvent them. Voice phishing scams typically coerce victims into converting cash to cryptocurrency and transferring it within a short timeframe. Even brief delays can disrupt these scams by providing victims with an opportunity to reassess or allowing alerts to emerge before funds are withdrawn.
Under the revised system, exchanges are required to apply uniform criteria when evaluating withdrawal exceptions, including factors such as account history, transaction patterns, and abrupt changes in user behavior. It is anticipated that less than 1% of users will qualify for immediate withdrawals.
Furthermore, platforms are obligated to enhance identity verification processes and closely monitor fund transfers. This development signifies a transition from industry-driven safeguards to a nationwide standard. In contrast, markets like the U.S. and Europe have withdrawal holds in place, but these are determined by individual companies.
Some exchanges even permit users to set personal timelocks to prevent unauthorized withdrawals. The South Korean regulatory authorities did not provide immediate comments when approached by CoinDesk for further clarification.