South Korean Customs tightens process for Importing Cryptocurrency Mining Equipment

South Korean Customs embargoes Importation of Cryptocurrency Mining Equipment Amidst High Interest

South Koreans are leading in cryptocurrency mining services and sophisticated mining rigs like the Nvidia GTX 1080 have gained a lot of popularity in the country due to high interest in the sector.

However, Cryptocurrency miners in South Korea might suffer a slight setback as the country’s customs service have banned foreign-made mining chips to be imported into the country. This is according to the information published by the Korean Customs Service (KCS) on Wednesday 19th April.

The agency listed foreign cryptocurrency mining equipment amongst imports that must pass special safety and sanitation requirements as well as other legal requirements.

This new directive was initiated after the Korean government noticed the increasing amount of mining equipment being brought into the country. According to a report by Kyunghyang a local news media, the KCS revealed in a publication that in November to December alone, an estimated four hundred and fifty-four mining chips totaling 1.3 billion Won ( about $1.2 million) was imported into South Korea.

The demand for the cryptocurrency mining rigs is still on a rise in South Korea, currently, a CPU like Nvidia GTX 1080 along with its cooling system comes at a cost of $8,000 making it one of the costliest mining rigs in the world. However, the hash rate (that is mining rate) which can be produced by such a rig is quite impressive. This is the main reason why this particular mining rig is in great demand.

As previously reported, most industry experts believe that with the current stance of cryptocurrencies, the demand for mining rigs will also diminish. However, in South Korea, the opposite is true as the demand for mining rigs is still increasing. This is actually a good news for the mining rig manufacturing companies like Nvidia and Bitmain which just recently unveiled a new mining chip.

Furthermore, since mining activities usually consume a high amount of power, the KCS raised concern over the possibility of it becoming a fire hazard. This new technical prohibition comes at a time when the South Korean Blockchain Association (KBA) –the agency in charge of proffering regulatory policies in the country is planning on introducing a self-regulatory framework for cryptocurrency exchanges in Korea.

Solomon Sunny is the market reporter for Smartereum, one of the global leaders in Ethereum, blockchain and currency news. He produces technical price updates on digital currencies and writes recent developments about blockchain.


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