Microsoft bans cryptocurrency mining on cloud services

A new usage agreement from Microsoft bans cryptocurrency from its cloud services

Cloud computing giant Microsoft is taking measures to increase the stability of its cloud services by imposing new restrictions on activities such as cryptocurrency mining .

British technology news agency The Register reported on December 15 that Microsoft (NASDAQ: MSFT ) has quietly banned cryptocurrency mining from its online services in order to better protect its customers and the cloud.

The company introduced the new restrictions as part of the Microsoft Online Services Global License Terms. Microsoft updated its usage policy on December 1, confirming that "cryptocurrency mining is prohibited without prior approval from Microsoft."

In the Acceptable Use Policy section, Microsoft states that it now requires users to obtain prior written consent from the company to use Microsoft online services.r crypto mining.

Microsoft stated that the latest digital mining restrictions are intended to protect online services from risks such as cyber fraud, attacks, and unauthorized access to customer resources, stating: “We made this change to increase protection for our customers and reduce the risk of disruption or impairment of services in the Microsoft Cloud.”

Permission to mine cryptocurrencies The company has also reportedly indicated that it may consider obtaining permission to mine cryptocurrencies for testing and research purposes for security disclosure purposes.

Microsoft Online Services are Microsoft's hosted software offerings and are a component of the company's software as a service strategy. These services include Microsoft's Azure cloud computing network which is known to offer cryptocurrency mining on certain subscription types. As previously reported, Microsoft also experimented with blockchain services on Azure but quietly ended the Azure Blockchain Service project in September last year.

According to some reports, Microsoft's cloud computing systems have experienced significant capacity shortages in recent years due to persistent supply chain constraints. More than six Azure data centers are expected to remain limited through early 2023.

In adopting the new restrictions, Microsoft joins several other cloud computing providers, including Google, who also prohibit customers from engaging in cryptocurrency mining without Google's prior written consent. Other platforms, such as Oracle, have completely banned cloud mining, while Digital Ocean also requires written permission.

Cloud mining is an alternative way to invest in cryptocurrencies allowing users to mine cryptocurrencies without the use of mining equipment or hardware by relying on a remote data center with shared processing power. According to the Blockchain research group Blockchain Group, cloud mining is one of the most profitable ways to mine cryptocurrency because it does not require customers to pay for equipment and related costs.

This news comes amid the cryptocurrency mining crisis which is going through a major crisis related to the current cryptocurrency winter where some miners are on the brink of bankruptcy due to lack of funds.