All KRW Virtual Asset Exchanges Implement ‘Withdrawal Delay System’ Starting Today

The Digital Asset eXchange Alliance (DAXA) announced that, to counteract voice phishing damages exploiting the virtual asset (cryptocurrency) market, all domestic KRW-based exchanges will implement a withdrawal delay system starting on the 24th.

The withdrawal delay system is a measure to prevent cases of funds stolen through voice phishing being converted into virtual assets. Until now, each exchange has implemented the system voluntarily. However, there have been criticisms that the criteria and operating practices for withdrawal delays differ among exchanges, making prevention insufficient.

Accordingly, DAXA, in consultation with financial authorities and its member companies, has prepared standard terms and conditions for the withdrawal delay system. After reflecting these in the regulations and making necessary system improvements, all domestic KRW-based exchanges have now adopted the standardized withdrawal delay system from today.

The standardized withdrawal delay system is based on the following: △When depositing funds for the first time, all virtual asset withdrawals are restricted for 72 hours. △When making an additional deposit, withdrawals of virtual assets equivalent to the deposited amount are restricted for 24 hours.

Kim Jae-jin, Executive Vice President of DAXA, stated, “This measure is an industry-led initiative to prevent the abuse of the digital asset market as a channel for voice phishing scams,” adding, “DAXA will continue to develop active and effective self-regulatory measures to protect users and prevent abuse of the market.”