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South Korea's financial authorities officially implement an enhanced virtual asset withdrawal delay system
ME News Report, April 8 (UTC+8), South Korea’s Financial Services Commission (FSC) and Financial Supervisory Service (FSS) announced that they will jointly work with the Digital Asset Exchange Alliance (DAXA) and various virtual asset exchanges to officially implement the “Enhanced Withdrawal Delay System.” Authorities have strengthened the standards for withdrawal delay exceptions and established unified internal regulations. Going forward, considerations must include the number of transactions, transaction periods, and deposit/withdrawal amounts. The system aims to prevent the flow of illicit funds from telecom scams into external wallets by restricting certain groups, such as new users, from withdrawing virtual assets within a specified period. Due to inconsistent standards and lack of clear benchmarks in the past, this loophole was exploited by criminals. According to statistics, between June and September last year, 59% of scam accounts on virtual asset exchanges were “exception accounts” with withdrawal delays. (Source: Foresight News)