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 managing withdrawal delays. This move aims to counter the rising incidence of voice phishing scams, which exploit the speed of transactions. Previously, exchanges had the discretion to allow users to bypass holding periods, but this flexibility has been withdrawn. 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 behavioral changes.
As a result, fewer than 1% of users are expected to be eligible for immediate withdrawals. Additionally, exchanges must enhance identity verification processes and closely monitor fund transfers. This shift towards a standardized national approach differs from the industry-led security measures commonly used in other markets, such as the U.S. and Europe, where withdrawal holds are typically set by individual companies.