According to a December 15 story from a British news outlet, Microsoft has covertly stopped crypto mining from its online services to better safeguard its users and its cloud services. Microsoft, a leader in cloud computing, is taking action to improve the stability of its cloud services by imposing additional limitations on activities like crypto mining.
The business added the new limitations as part of the terms of its Microsoft Online Services universal licence. The policy was updated on December 1 to make it clear that “cryptocurrency mining is prohibited without prior Microsoft approval.
Microsoft stated that customers must now seek a formal pre-approval from the firm in order to utilize any of its online services for cryptocurrency mining in the “Acceptable Use Policy” section.
Utilizing a remote datacenter with shared computing power, cloud mining is an alternate strategy for investing in cryptocurrencies that enables users to mine digital coins without using mining hardware or equipment. Because consumers don’t have to pay for the equipment and associated fees, cloud mining is one of the most lucrative ways to mine cryptocurrency, according to blockchain research organization Blockchain Council.
According to reports, Microsoft stated that its most recent crypto mining limits are intended to safeguard online services from threats including cybercrime, assaults, and illegal access to user data.
The business also 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 product. One of these services is the Microsoft Azure cloud computing network, which offers bitcoin mining for several subscription kinds. As was previously reported, Microsoft also tested out blockchain services on Azure, but in September of last year, the project was unceremoniously ended.
Some reports claim that due to ongoing supply-chain constraints, Microsoft cloud computing systems have experienced significant capacity shortages in recent years. It is rumoured that the number of Azure data centres will continue to be restricted until the beginning of 2023.
By enacting the new limits, Microsoft joins a large number of other cloud service providers, such as Google, which similarly forbids users from mining cryptocurrencies without Google’s prior written consent. Cloud mining is absolutely prohibited on some platforms, such as Oracle, while Digital Ocean also demands explicit authorization.
The revelation comes as the cryptocurrency winter is causing a serious crisis in the cryptocurrency mining business, with several miners on the verge of going bankrupt from a lack of funding.