In a significant move to combat voice phishing scams, South Korea's financial regulatory bodies have introduced a unified, stringent system for delaying withdrawals across all domestic cryptocurrency exchanges. This measure aims to counter the surge in scams that exploit the speed of transactions. Previously, exchanges had the discretion to allow users to bypass holding periods, but this has now been standardized to prevent fraudsters from exploiting these exceptions.
The new rules, announced by the Financial Services Commission and Financial Supervisory Service, mandate that exchanges apply uniform criteria when reviewing withdrawal exceptions, including factors such as account history, transaction patterns, and sudden behavioral changes. As a result, it is anticipated that less than 1% of users will be eligible for instant withdrawals.
Furthermore, exchanges are required to enhance identity verification processes and closely monitor fund flows. 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 firms, South Korea's regulatory bodies have taken a more centralized approach to combating phishing scams.