Microsoft is now requiring users to get written approval from the company to use Microsoft Azure to mine cryptocurrencies like Bitcoin.
Cloud computing giant Microsoft is taking steps to increase the stability of its cloud services by imposing new restrictions on activities such as cryptocurrency mining.
Microsoft has gradually banned crypto in its online services to protect its customers in the cloud, UK technology company The Register reported on Dec. 2. 15.
The company introduced the new restrictions as part of the Microsoft Online Services Universal License Agreement. Microsoft updated its Acceptable Use Policy on December 1 to state that “cryptocurrency mining without Microsoft’s approval is prohibited.”
In the section “Acceptable Use Policy,” Microsoft said that it now requires users to obtain written approval from the company to use any Microsoft-developed crypto mining online service. . Microsoft reportedly said that its new crypto mining ban is meant to protect online services from threats such as cyber fraud, attacks, and unauthorized access to customer resources, stating:
“We made this change to protect our customers and reduce the risk of interruption or disruption of services in the Microsoft Cloud.”
The company also reported that it may consider a license to mine crypto for testing and research purposes for security research.
Microsoft did not immediately respond to Cointelegraph’s request for comment. Microsoft Online Services is a software offering sponsored by Microsoft and is part of the company’s software as a service plan. These services include Microsoft’s Azure cloud computing network, which is known to offer cryptocurrency mining and some subscription models. As previously reported, Microsoft also tested blockchain services on Azure, but quietly discontinued the Azure Blockchain Service in September last year.
According to some reports, Microsoft’s cloud computing system has experienced capacity shortages in recent years due to continuous overcrowding. More than half a dozen Azure databases are expected to last until early 2023.
In accepting the new restrictions, Microsoft joins many cloud providers, including Google, which also prohibits customers from engaging in cryptocurrency mining without Google’s written approval. Other platforms such as Oracle are completely restricted from cloud computing, while Digital Ocean requires written permission.
Cloud mining is another way of investing in crypto that allows users to access digital coins without using infrastructure or hardware, relying on remote data centers with shared processing power. According to the blockchain research group Blockchain Council, cloud mining is one of the most cost-effective ways to acquire crypto because it does not require customers to pay for infrastructure and related fees.
The news comes in the midst of the cryptocurrency mining industry going through major problems related to the current cryptocurrency winter, with some miners going through the roof due to a lack of sufficient funds.
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