South Korea Tightens Crypto Withdrawal Rules to Combat Phishing Scams

Severity: High (Score: 67.5)

Sources: News.Bitcoin, Koreatimes.Co.Kr

Summary

South Korea's financial regulators have implemented stricter and unified standards for cryptocurrency withdrawal delays to combat voice phishing scams. The new regulations, effective immediately, address vulnerabilities in the existing Virtual Asset Withdrawal Delay System, which was launched in May 2025. A review revealed that 59% of fraudulent accounts were exempt from withdrawal delays, allowing scammers to quickly cash out stolen funds. The new rules require all exchanges to adhere to standardized criteria for exemptions, significantly reducing the number of eligible accounts. Enhanced monitoring and annual verification processes will be introduced for high-volume traders. The changes aim to prevent the laundering of criminal proceeds through cryptocurrencies, which accounted for approximately $124 million in losses from June to September 2025. Legitimate users will still be able to withdraw funds immediately for valid reasons. The regulatory bodies involved include the Financial Services Commission (FSC), the Financial Supervisory Service (FSS), and the Digital Asset Exchange Association (DAXA). Key Points: • South Korea has introduced unified withdrawal rules to combat voice phishing in crypto. • 59% of fraudulent accounts previously bypassed withdrawal delays due to inconsistent criteria. • New regulations will reduce eligible accounts for exemptions by over 99% by end of 2025.

Key Entities

• Phishing (attack_type)
• South Korea (country)
• T1566 - Phishing (mitre_attack)