South Korean cryptocurrency exchange, Upbit is going to introduce a withdrawal delay system from Friday in an attempt to curb malicious activities.
Announced today, the exchange is introducing a 24-hour delay on all digital asset withdrawal requests after depositing in Korean fiat. With this restriction, traders have to wait for a day to cash out in crypto after making a deposit of the same amount in Korean won.
The exchange did not set any fiat restriction for this withdrawal delay.
“Even if a member with a balance of 0 won in an Upbit account deposits 1 million won and requests withdrawal of a digital asset worth 1 million won before 24 hours, the withdrawal will not work. However, after 24 hours of deposit, you can withdraw digital assets worth 1 million won at the time of withdrawal application without such restrictions,” the exchange explained.
End of Instant Withdrawals?
According to Upbit, this move will prevent financial fraud using the exchanges’ client accounts. It particularly pointed out curbing ‘voice phishing’, a popular technique with which scammers try to gain crucial information from victims over the phone.
Launched in 2017, Upbit is one of the top South Korean crypto exchanges. However, it fell victim to a major hacking attack last year as over $50 million in Ether (valued as per the market price at that time) was siphoned off.
Following the attack, the exchange also upgraded its wallet security.
“We plan to create a reliable digital asset investment environment by taking a closer look at changes in the types of financial fraud and continually strengthening preventive measures,” an exchange official said.