South Korean Shopping Mall Prohibits Bitcoin Mining

A South Korean shopping mall has banned merchants from mining cryptocurrencies. They mainly targeted miners of bitcoin and ethereum. They cited electrical costs as the main issue. It appears that many cryptocurrency miners used the Yongsan Electronics Market to conduct various mining operations. They were also concerned about starting a fire, suggested reports from the Korea Economic Daily. 

Also read: ‘Bitcoin Regulation Act’ Introduced in South Korea Bans MLMs

The report stated, “As merchants who run PCs (diggers) in virtual shopping malls are South Korean Shopping Mall Prohibits Bitcoin Miningincreasing in the shopping mall, there are complaints about power consumption and room temperature rise as well as fire worries.”

Management of the market also said that an increase in electrical costs would be applied to merchants bills. It appeared like the mall’s representatives was ready to crack down on all underground operations within its location. The report also stated the air conditioning was not working well since the miners took up residence.

Gold Rush of South Korean Mining

Overall, there seems to be a gold rush of mining in South Korea. Various mining operations in shopping malls are constantly humming. This occurs because — like American flea markets — vendors rent rooms and space in the markets. Once they have the space, they set up miners and begin to process mining transactions. It is all the rage lately.

The Yongsan Electronics Market sent a letter to a tenant and told them to stop mining. They explained that it is against the rules. The letter stated:

When a mining machine is operated, a considerable amount of power is consumed. As a result, the electricity price increases sharply (due to the progressive tax) in the shopping districts, which increases the cost burden on all merchants.

So Many Miners Mining Meticulously

A lot of power is consumed, especially with as many miners the report said are running concurrently. Apparently, about 100 miners just from one company work around the clock to generate new bitcoin and ethereum. Some news sites suggested that about $300,000 worth of ASIC mining equipment was installed at the marketplace.

South Korean Shopping Mall Prohibits Bitcoin Mining

This surge of mining in marketplaces comes alongside South Korea’s creation of a regulatory framework for digital currencies. recently covered Korean Democratic Party lawmaker Park Yong-jin‘s announcement that the cryptocurrency legal framework is in place. His framework detailed that cryptocurrencies are considered “electronic stores of value” or “instruments of exchange.”

This new framework should also provide information on how bitcoin mining will function. It will describe how regulation will affect miners and what rules they will need to follow. Business Korea wrote that the Bitcoin Regulation Act is scheduled for a regular session of the National Assembly in September.

Do you think more shopping malls in Korea will have this problem? What do you think about the future of bitcoin and bitcoin cash mining? Let us know in the comments section below.

Images courtesy of Shutterstock

At there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.

  • Rudolph Haynes

    Electric Power costs can cause mining issues in many countries where power is all ready Costly… We must solve this problem asap. Need better GPU,s………

  • 300,000USD worth of ASIC miners is only 2-3kWh depending upon AC/DC power supply efficiency. But, it is 200 ASIC miners blowing out 80-90C of heat each. More of a fire Hazard than a power consumption issue. Sounds like a business opportunity for someone in SK to supply an industrial warehouse well ventilated composed of rental suites. Each containing ventilation and a stepdown transformer. Make lemonade, mining is here to stay.

    • Mike Myers

      I think you may have underestimated electric use. If there were 150 S9 units in the building, that would be over 200Kw/H per hour, and around 4.8Mw/H a day. That is a significant power load.

      • My numbers come from my setup, I have 200TH in cells of 100TH each, six PSUs total with a manager. It really depends on your dc conversion and efficiency of AC/DC power supplies and how AC source is delivered. I tend to like the 4xS9 to a power supply running 18amp draw on the AC down from a stepdown 480/208 100KVA transformer. I have run 3xPSU and it is nearly the same but heat goes up in the power cell. Your configuration sounds like a power supply per S9 @ 15 amp. Yeah, that adds up to a huge draw. Try Server Supplies from Dell or IBM; super efficient(95-99%), tons of research on efficiency, and lots of them available and grab the backplane it was powering, gives you the ability to distribute DC with ease. I do run into lots of people calculating the wrong power factor, try 0.3-0.5 on the power factor as the step down draw in single phase. If you plug right into the power company, you have to understand they are not efficient and the Current Transformers are usually 30-40x multipler. I encourage everyone to front load with a transformer and test load before you start out. You have to know the power company’s equipment is up to the job and their accounting is accurate. Using a single home direct connect to a PSU per miner is just not going to be efficient. Server Farms in PoPs have got this down to a science, I recommend touring one. Your power is key to profit in mining. And, keeping it cool. Cool runs forever. It is daunting to gather the right intelligence. Get council from a Network Design and Installation Engineer, it helps if that person has had experience in DC backup and conversion.

  • Dr. Bubó

    They could buy a few wind-up generators and import chinese or n. korean workers… LOL