Starting June 24, South Korean crypto exchanges will roll out mandatory withdrawal delays, a bold move to clamp down on rampant voice phishing scams. The Digital Asset eXchange Alliance (DAXA) is spearheading this initiative to safeguard investors’ funds. Here’s what you need to know.
Why Are South Korean Crypto Exchanges Introducing Withdrawal Delays?
The new policy aims to disrupt fraudsters who convert stolen fiat into cryptocurrency. Key reasons include:
- Preventing rapid fund transfers used in voice phishing scams.
- Standardizing security measures across all major exchanges.
- Enhancing traceability of suspicious transactions.
How DAXA’s Policy Will Reshape Cryptocurrency Security
DAXA, comprising South Korea’s top five exchanges, is unifying withdrawal protocols to close loopholes. Previously, inconsistent delays between platforms allowed scammers to exploit weaker systems.
What Traders Should Expect
While delays may inconvenience legitimate users, the trade-off is heightened security. Exchanges will likely:
- Implement a 24-hour hold for large withdrawals.
- Require additional identity verification steps.
- Monitor transactions for red flags.
Will This Stop Voice Phishing Scams for Good?
No system is foolproof, but DAXA’s coordinated effort marks a significant step forward. By slowing down fund movement, exchanges gain critical time to detect and block fraudulent activity.
Conclusion: A Necessary Step for a Safer Crypto Ecosystem
South Korea’s proactive stance sets a precedent for global cryptocurrency regulation. While withdrawal delays may frustrate some users, the long-term benefits for security and trust outweigh the temporary inconvenience.
Frequently Asked Questions (FAQs)
1. Which exchanges are part of DAXA?
DAXA includes Upbit, Bithumb, Coinone, Korbit, and Gopax—South Korea’s five largest cryptocurrency platforms.
2. How long will withdrawal delays last?
Delays are expected to range from a few hours to 24 hours, depending on transaction size and risk factors.
3. Can users bypass these delays?
No. The policy is mandatory across all fiat-to-crypto exchanges in South Korea.
4. Will this affect international traders?
Primarily, the rule targets domestic fiat withdrawals, but international users may experience slower processing times for KRW transactions.
5. Are other countries likely to adopt similar measures?
Given the global rise in crypto-related scams, other regulators may follow South Korea’s lead.
