South Korea's financial regulators have implemented unified and stricter standards for cryptocurrency withdrawal delays to combat voice phishing. The Financial Services Commission (FSC), Financial Supervisory Service (FSS), and Digital Asset Exchange Association (DAXA) have introduced these measures after data revealed that 59% of fraud occurred through withdrawal exceptions. The new rules are expected to reduce withdrawal exception eligibility by over 99%.
The revised regulations aim to close loopholes exploited by criminals who laundered funds through lax exception standards. Previously, individual exchanges set their own criteria for withdrawal exceptions, leading to significant fraud. From June to September 2025, 1,490 out of 2,526 fraudulent accounts were exempt from delays, resulting in $124 million in damages. The new mandate requires exchanges to adhere to stricter criteria, including transaction frequency and account duration analysis, with no exceptions allowed under certain conditions.
Projections indicate that by the end of 2025, the number of customers eligible for exceptions will drastically decrease. The FSC will also implement a tracking system to monitor withdrawal data and identify suspicious activities. Regular audits by the FSS and DAXA will ensure compliance, with penalties for non-compliance. Immediate withdrawals will still be permitted for non-criminal activities.
South Korea Tightens Crypto Withdrawal Rules to Curb Phishing Fraud
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