South Korean Financial Authorities Officially Implement Enhanced Virtual Asset Withdrawal Delay System

Foresight News reports, citing News1, that the South Korean Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) have announced the official implementation of the 'Enhanced Withdrawal Delay System' in collaboration with the Digital Asset Exchange Alliance (DAXA) and various virtual asset exchanges. Authorities have strengthened the exception criteria for withdrawal delays and established unified internal standards. Moving forward, factors such as transaction frequency, transaction duration, and deposit/withdrawal amounts must be considered. The system aims to prevent funds from telecom fraud from flowing into external wallets by restricting certain groups, such as new users, from withdrawing virtual assets within a specified period. In the past, inconsistent standards across exchanges and the lack of clear benchmarks allowed criminals to exploit these loopholes. Statistics show that between June and September last year, 59% of fraudulent accounts at virtual asset exchanges fell under the 'exception accounts' category for withdrawal delays.