Regulators tighten crypto exchanges' withdrawal rules to curb scams

Financial regulators said Wednesday they will close loopholes in how cryptocurrency exchanges handle withdrawal delays by introducing a unified set of exemption rules across the industry. The measure is aimed at preventing criminals, such as voice phishing and scammers, from quickly cashing out stolen funds. In many cases, illicit money is first deposited into an account, converted into cryptocurrency and then withdrawn before it can be traced or frozen. Since May 2025, authorities have required exchanges to delay crypto withdrawals for 24 to 72 hours after a deposit. The idea is to create a buffer period that gives financial institutions time to detect and block suspicious transactions. There are exemptions to the rule, based on factors such as how long an account has been active, its transaction history, trading volume and any record of financial misconduct. However, until now, each exchange applied its own criteria. That inconsistency created loopholes. In some cases, accounts could qualify for exemptions relatively easily, allowing scammers to bypass the delay and withdraw funds almo

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