Microsoft Bans Crypto Mining on Cloud Services to Enhance Security
Cloud computing giant Microsoft is taking measures to increase the stability of its cloud services by enforcing new restrictions on activities like cryptocurrency mining. According to a report by The Register on Dec. 15, Microsoft has quietly banned crypto mining from its online services to better protect its customers and cloud infrastructure.
The company introduced the new restrictions as part of its universal license terms for Microsoft Online Services. On Dec. 1, Microsoft updated its acceptable use policy to clarify that “mining cryptocurrency is prohibited without prior Microsoft approval.” The updated policy requires users to obtain written pre-approval from Microsoft to use any of its online services for crypto mining.
Microsoft stated that these crypto mining restrictions aim to protect its online services from risks such as cyber fraud, attacks, and unauthorized access to customer resources, emphasizing: “We made this change to further protect our customers and mitigate the risk of disrupting or impairing services in the Microsoft Cloud.” The firm may consider granting permission to mine crypto for testing and research purposes related to security detections.
Despite not immediately responding to Cointelegraph’s request for comment, Microsoft Online Services is integral to the firm’s software as a service strategy. These services include Microsoft’s Azure cloud computing network, which had previously offered cryptocurrency mining on certain subscription types. The tech giant had also experimented with blockchain services on Azure but quietly terminated its Azure Blockchain Service project in September last year.
Reports suggest that Microsoft’s cloud computing systems have faced notable capacity shortages in recent years due to ongoing supply chain constraints, with more than six Azure data centers expected to remain limited until early 2023. By adopting these new restrictions, Microsoft joins other cloud computing providers like Google, which also prohibits customers from engaging in cryptocurrency mining without prior written approval. Platforms like Oracle have banned cloud mining entirely, while Digital Ocean requires written permission to proceed.
Cloud mining allows users to mine digital coins without the need for mining equipment or hardware, relying instead on remote datacenters with shared processing power. Blockchain research group Blockchain Council suggests that cloud mining is one of the most profitable ways to mine crypto since it doesn’t require customers to pay for mining equipment and related costs. This news comes amid significant turmoil within the cryptocurrency mining industry, which is currently facing a major crisis linked to the broader crypto winter, pushing some miners to the brink of bankruptcy due to insufficient funds.
