South Korea Restricts Crypto Mining Chips Importation


Although South Korea had appeared to loosen its stance on regulations against the use of cryptocurrencies, crypto miners in the country might find it difficult to get crypto mining chips easily imported from other countries.

Korea Customs Service (KCS) has tightened its rules on the importation of about 292 items from other countries, one of which is the importation of cryptocurrency mining chips from foreign countries.

According to South Korea’s media outlet, Kyunghayang, the new measures were put in place after the KCS noted the high amount of electrical energy consumed by mining cryptocurrencies and high discharge of heat, contributing to the susceptibility of homes to fire outbreaks.

The South Korean Control and regulatory agency noted a correlation between the rise in the number of cryptocurrency miners in the country and an increase in the amount of crypto mining chips imported which had, according to Coindesk, spiraled to about 454 chips in December 2017.

Citing a bid to place better control over the risk of fire outbreaks due to the heating by-products and provide a safer environment, the Korean Customs Service plans to review safety measures around imported crypto mining chips to ensure they are certified by the National Institute of Radiology Research.

South Korea joined other nations in the wave of regulations against cryptocurrencies and ICOs in 2017 due to the risks involved. However, it appeared that the South Korean government were willing to loosen their hold on regulations as BitRazzi reported an announcement made indicating that the government was meeting relevant departments and officials to lift the bans.

The government is reportedly planning to impose tax duties upon cryptocurrency exchanges and reviewing a regulatory framework for all exchanges in the country.