Microsoft bans cryptocurrency mining on cloud services

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Microsoft, a leader in cloud computing, is taking action to improve the stability of its cloud services by imposing new limitations on activities like cryptocurrency mining.

According to a Dec. 15 report from the British technology news outlet The Register, Microsoft has covertly banned crypto mining from its online services to better protect its users and clouds.

The company added the new limitations as part of the terms of its Microsoft Online Services universal licence. On December 1, Microsoft clarified in an update to its acceptable use policy that “cryptocurrency mining is prohibited without prior Microsoft approval.”

Microsoft stated that users must now obtain a written pre-approval from the company in order to use any of its online services for cryptocurrency mining in the “Acceptable Use Policy” section.

According to reports, Microsoft stated that its most recent crypto mining restrictions are intended to safeguard online services from threats like cybercrime, attacks, and unauthorised access to user resources.

We made this adjustment to better safeguard our clients and reduce the possibility of services in the Microsoft Cloud being interrupted or degraded.

The business reportedly added that it might take into account getting authorization to mine cryptocurrency for security detection testing and research.

Microsoft Online Services, a part of the company’s software as a service strategy, is its hosted software offering. One of these services is the Microsoft Azure cloud computing network, which offers cryptocurrency mining for some subscription types. As was previously reported, Microsoft also tested out blockchain services on Azure, but in September of last year, the project was quietly ended.

According to some reports, Microsoft cloud computing systems have suffered notable capacity shortages in recent years due to continuing supply-chain limitations. It is rumoured that the number of Azure data centres will continue to be restricted until the beginning of 2023.

By adopting the new limitations, Microsoft joins a large number of other cloud computing providers, such as Google, which also forbids users from mining cryptocurrencies without first receiving written consent from Google. Cloud mining is completely prohibited on some platforms, such as Oracle, while Digital Ocean also demands written authorization.

Using a remote datacenter with shared processing power, cloud mining is an alternative strategy for investing in cryptocurrencies that enables users to mine digital coins without using mining hardware or equipment. Because customers don’t have to pay for the equipment and associated costs, cloud mining is one of the most lucrative ways to mine cryptocurrency, claims blockchain research organisation Blockchain Council.

The news comes as the cryptocurrency winter is causing a serious crisis in the cryptocurrency mining industry, with some miners on the verge of going bankrupt from a lack of funds.

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