In a significant effort to combat voice phishing scams, South Korea's financial regulatory bodies have introduced a unified, stringent system for managing withdrawal delays across all domestic cryptocurrency exchanges. The move aims to counter the rising incidence of scams that exploit swift transaction capabilities. According to local news reports, the Financial Services Commission and the Financial Supervisory Service have announced these new rules, thereby eliminating the discretionary powers previously held by exchanges to waive holding periods for users.
Historically, exchanges had set their own rules to facilitate faster trading, but fraudsters adapted to these rules, instructing their victims on how to bypass them. Voice phishing scams typically involve coaxing victims into converting their money into cryptocurrency and transferring it within a short timeframe. Even brief delays can disrupt such scams by giving victims time to reflect or allowing alerts to be raised before funds are transferred out of an account. Under the new regulations, exchanges are required to apply uniform criteria for evaluating withdrawal exceptions, including factors such as account history, transaction patterns, and abrupt behavioral changes.
It is anticipated that less than 1% of users will be eligible for immediate withdrawals. Additionally, exchanges must enhance identity verification processes and closely monitor fund movements. This development signifies a transition from industry-driven security measures to a nationwide standard.
In contrast, markets like the U.S. and Europe often have withdrawal holds in place, but these are determined by individual companies. Some exchanges even offer users the option to set their own transaction lockouts to prevent unauthorized withdrawals.
The South Korean regulatory authorities did not provide immediate comments when approached by CoinDesk for further information.