South Korea Crypto Regulations

South Korea's financial regulator is tightening the exception rules under crypto exchanges' withdrawal-delay system after finding that scam-linked accounts granted exemptions accounted for most voice-phishing-related losses. The Financial Services Commission said inconsistent exemption rules created loopholes that allowed funds to move quickly with minimal account history. The move is part of a wider push to tighten crypto exchange controls after voice-phishing abuse and operational-control failures. From June to September 2025, accounts granted withdrawal-delay exemptions made up 59% of fraudulent accounts and 75.5% of related losses at crypto exchanges. The new rules will impose unified standards on when users can bypass withdrawal delays, taking into account factors like trading frequency and account history. The new framework, developed with the Financial Supervisory Service and the Digital Asset eXchange Alliance, is set to be implemented in the coming months, with exchanges required to assess user eligibility for withdrawal-delay exemptions more stringently. The regulator will monitor the effectiveness of the new rules, with a review expected by the end of Q2 2026.