South Korea‘s financial regulators have issued a directive requiring every domestic cryptocurrency exchange to implement a standardised withdrawal delay system. The move is aimed at curbing the growing threat of voice phishing scams that have targeted users of digital asset platforms. The new framework represents a coordinated regulatory response across the entire domestic crypto sector.
Under the new rules, uniform criteria will govern when users may qualify for exceptions to the mandatory withdrawal delay. These criteria are based on factors such as account history and individual transaction patterns. The standardised approach is intended to eliminate inconsistencies that previously existed between different exchanges operating in the country.
Regulators expect that fewer than one percent of users will meet the threshold required for instant withdrawals. This means the vast majority of users on domestic platforms will be subject to a waiting period before funds can be moved. The strict qualification bar reflects the authorities’ intent to prioritise fraud prevention over transactional convenience.
As part of the broader directive, exchanges are also required to strengthen their identity verification procedures and enhance ongoing transaction monitoring. These additional obligations are designed to ensure that platforms maintain a higher standard of due diligence when processing user activity. Regulators appear to be placing greater responsibility on exchanges to act as a frontline defence against financial crime.
The directive signals an increasingly assertive stance by South Korean financial authorities toward the cryptocurrency industry. By mandating a single, unified system rather than allowing each platform to set its own policies, regulators are moving toward greater standardisation of consumer protections in the digital asset space. The full impact on exchange operations and user experience is expected to become clearer as platforms work toward compliance.
Originally reported by CoinDesk.
