South Korea Enforces Unified Crypto Withdrawal Rules
- South Korean financial regulators are implementing a standardized withdrawal delay system across all local crypto exchanges.
- The new rules aim to reduce fraud by enforcing a mandatory delay of between 24 to 72 hours on crypto withdrawals.
- Previously, up to 59% of fraud-linked exchange accounts exploited loopholes in the withdrawal exception criteria.
- Authorities plan to reduce exception accounts to less than 1% and require exchanges to enhance KYC and fund-source checks.
The unified withdrawal system is designed to prevent voice phishing scams by closing exchange-specific loopholes that allowed rapid fund transfers before detection. The initiative includes tighter scrutiny and regular verification of exempt accounts, aiming for greater security in the crypto market.
By standardizing delays and tightening exemptions, South Korea aims to significantly curb fraud while maintaining flexibility for genuine immediate withdrawals. (Source)
