South Korea’s financial authorities, in collaboration with the Digital Asset eXchange Alliance (DAXA) and major crypto exchanges, have introduced a reinforced withdrawal delay system. The policy aims to prevent the outflow of funds stolen through voice phishing by tightening the rules around exceptions to withdrawal delays. Previously, inconsistent standards across exchanges allowed criminals to exploit exceptions and quickly withdraw illicit gains. A review found that 59% of scam accounts from June to September 2025 benefited from withdrawal delay exceptions. This prompted the government to unify and strengthen the standards.
The new policy directly impacts crypto exchanges, their customers, and financial regulators. All exchanges must now adopt a standardized set of criteria for granting withdrawal delay exceptions, considering factors such as transaction history, duration, and amounts. Customers who qualify for exceptions will undergo enhanced verification and periodic reviews, including annual checks of fund sources. The policy also mandates the creation of a monitoring system to track and analyze exception accounts, aiming to systematically manage potential risks.
Implementation of the unified standards is immediate, with simulation results indicating that the proportion of exception accounts will drop to under 1% by the end of 2025. The Financial Services Commission (FSC) and Financial Supervisory Service (FSS) will regularly assess the policy’s effectiveness and adjust criteria as needed to prevent circumvention by criminals. If any operational shortcomings are identified, authorities will promptly address them. The policy also ensures that legitimate users, such as those needing immediate withdrawals for settlement, are not unduly inconvenienced.
Frequently asked questions include: What is the withdrawal delay system? It is a mechanism that restricts immediate crypto withdrawals for new or high-risk users to prevent rapid outflow of stolen funds. Who monitors the exceptions? Exchanges must now conduct regular, enhanced due diligence and monitoring of exception accounts. What if a legitimate user needs an urgent withdrawal? The policy allows for exceptions in cases unrelated to voice phishing, minimizing inconvenience for normal users.
Metaqsol opinion: South Korea’s move to unify and strengthen withdrawal delay standards for crypto exchanges is a targeted response to the high proportion of scam accounts exploiting previous exceptions. The policy’s focus on enhanced monitoring and periodic verification should significantly reduce the risk of rapid fund outflows from voice phishing. By allowing for legitimate exceptions, the authorities also show an understanding of user needs. Overall, this policy is a balanced and data-driven approach to digital asset security.