No it could not be eksploited since with the Chip in u would be under the current PVP rule set... I.e. going into camelot, a 25% zone, u would be open for combat just like u are today...
remove the chip = Open PvP Everywhere...
Keep the chip in = u are under current PvP rules, I.e. all current PvP zones would still be PvP, so no eksploits on that part.