Upbit exchange will restrict withdrawals to protect users from fraud
South Korean cryptocurrency exchange Upbit announces withdrawal restrictions to protect user accounts from potential attacks.
The measure comes into force on November 28. Under the new restrictions, users will be able to withdraw digital assets only in the amount corresponding to the volume of their deposits within 24 hours after submitting a withdrawal request in fiat equivalent. The solution applies to fiat deposits that were used to buy cryptocurrencies. There is no time limit on KRW withdrawals for deposits that were also made in fiat currency. Likewise, a user can deposit in a digital asset and withdraw won or digital assets within 24 hours.
“If a user with zero won balance deposits 1 million won into their Upbit account and requests the withdrawal of a digital asset worth 1 million won in less than 24 hours, the withdrawal will be declined. However, after 24 hours from the date of the deposit, you will be able to withdraw digital assets worth 1 million won at the exchange rate at the time of application without these restrictions, “the exchange writes..
As the company explains, in this way it strives to proactively prevent financial fraud on its platform. The Bithumb exchange mentions “voice phishing”, which is a type of scam in which the victim is persuaded over the phone to pass on sensitive financial information. Delaying withdrawals is expected to allow users to block pending fraudsters’ transactions upon notification..
“We are committed to creating a secure environment for investing in digital assets, with a focus on evolving types of financial fraud and continually reinforcing preventive measures,” says Upbit.