In a significant crackdown on phishing scams, South Korea's financial regulatory bodies have mandated that all local cryptocurrency exchanges implement a unified, stringent system for delaying withdrawals. This move aims to counter the rising incidence of voice phishing scams that exploit rapid transaction capabilities. The Financial Services Commission and the Financial Supervisory Service have announced these new rules, effectively eliminating the discretion exchanges previously had to allow users to bypass waiting periods, as reported by local news sources.
Historically, cryptocurrency platforms established their own rules for exceptions to maintain swift trading. However, fraudsters adapted to these rules, guiding their victims on how to bypass them. Voice phishing scams typically coerce victims into converting cash to cryptocurrency and transferring it within minutes.
Even a brief delay can disrupt such scams by providing victims with time to reconsider or allowing alerts to emerge before funds are withdrawn. Under the new regulations, exchanges are required to apply uniform criteria when evaluating withdrawal exceptions, including account history, transaction patterns, and abrupt changes in user behavior.
Officials anticipate that less than 1% of users will be eligible for immediate withdrawals. Additionally, platforms must enhance identity verification processes and closely monitor fund transfers. This development signifies a transition from industry-driven safeguards to a nationally standardized approach. 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 permit users to set personal timelocks to prevent unauthorized withdrawals. The South Korean regulatory authorities did not provide immediate comment when contacted by CoinDesk.