South Korea’s Crypto Mining Chip Imports To Go Under Stricter Regulations
Cyrptocurrency is very popular in South Korea and its production isn't similar to regular money; there is no central authority that issues new notes. Instead, this uses bitcoins that are generated through cryptocurrency mining. According to recent news, the miners will soon find it difficult to acquire foreign-made mining chips imported into the country.
The Korean Customs Services (KVS) said that the mining chips used for cryptocurrency have been added to the list of items that must meet legal requirements for importation. This is due to the growing number of miners imported into the country.
The growing demand made the agency question the electricity consumption it requires for production. They are also concerned because it is an associated heating byproduct, which could bring potential fire incidents.
This comes in light of the halt public and private sectors have placed over illegal mining activities especially in public spaces because of its high electricity consumption and fire risk.
Early this month, the South Korean police have arrested over a dozen individuals from different companies involved in illegal bitcoin mining operation in Gwangju. The individuals were said to be using cheap electricity from industrial complexes. It is reported that companies within these complexes benefit from subsidized rental and electrical costs hence they choose such locations for crypto mining.
These companies have violated factory rules by installing between 100-350 bitcoin miners within the premises of industrial complexes.
The illegal operations are brought by the competition against other miners as the ones who get to calculate as many hashes as possible to be able to hit the correct one and form a block will immediately get their cryptocurrency payout.
Mining cryptocurrency has also become harder these days as it now requires more hardware for efficient mining. This is also why many miners choose to join forces to create mining pools in which they share computer power and the returns from their efforts.