In a significant crackdown on phishing scams, South Korea's financial regulatory bodies have mandated that all domestic cryptocurrency exchanges implement a standardized system for delaying withdrawals. This move aims to combat the rising incidence of voice phishing scams that exploit the speed of transactions. Previously, exchanges had the discretion to allow users to bypass holding periods, but this has been removed in favor of a strict, uniform approach. The new rules, announced by the Financial Services Commission and Financial Supervisory Service, require exchanges to apply consistent criteria when evaluating withdrawal exceptions, including account history, transaction patterns, and unusual changes in behavior.
As a result, fewer than 1% of users are expected to be eligible for instant withdrawals. Additionally, exchanges must strengthen identity verification processes and closely monitor fund movements.
This shift from industry-led security measures to a nationwide standard marks a notable development in the regulatory landscape. In contrast to other markets, such as the US and Europe, where withdrawal holds are typically set by individual firms, South Korea's approach represents a more centralized effort to combat phishing scams.