Crypto Exchange Upbit Sets Withdrawal Delay in Bid to Tackle Fraudsters

The South Korea-based exchange has announced a 24-hour cryptocurrency withdrawal delay in an effort to protect user accounts from malicious attacks.

AccessTimeIconNov 27, 2020 at 9:57 a.m. UTC
Updated Sep 14, 2021 at 10:35 a.m. UTC

South Korea-based exchange Upbit has announced a limited cryptocurrency withdrawal delay in an effort to protect user accounts from malicious attacks.

Scheduled to take effect on Nov. 28, the new restriction will only allow users to withdraw digital assets equal in value to the total of Korean won (KRW) deposited 24 hours after a withdrawal was requested.

The withdrawal delay is only applicable to cash deposits that are exchanged for cryptocurrency. There is no time limit on Korean won (KRW) withdrawals corresponding to KRW deposits. Similarly, users can deposit digital assets and withdraw KRW or digital assets within 24 hours.

"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," according to Upbit's notice on Friday.

The new rule is aimed to help the exchange block financial frauds in advance. Bithumb specifically cites the issue of "voice phishing" – a form of scam that attempts to trick victims into giving up sensitive financial information over the phone. Presumably, the delay gives users a chance to block fraudsters when they receive notification of a pending withdrawal.

"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 Upbit official said.

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