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 quietly banned cryptocurrency mining in its online services to better protect its customers and clouds, British technology news agency The Register reported on Dec. 15.
The company introduced the new restrictions as part of its Microsoft Online Services Universal License terms.. Microsoft updated its acceptable use policy on December 1 to clarify that “cryptocurrency mining is prohibited without prior approval from Microsoft.”
In the “Acceptable Use Policy” section, Microsoft said it now requires users to get prior written approval from the company in order to use any of the Microsoft Online services for cryptocurrency mining.
Reportedly, Microsoft said its latest restrictions on cryptocurrency mining are aimed at protecting online services from risks such as cyber fraud, attacks, and unauthorized access to customer resources.stating:
“We made this change to further protect our customers and mitigate the risk of interruption or deterioration of services in the Microsoft Cloud.”
The company has also reportedly indicated that it may consider allowing it to mine cryptocurrency for the purposes of testing and investigating security detections.
Microsoft did not immediately respond to Cointelegraph’s request for comment.
Microsoft Online Services is Microsoft’s hosted software offering and is 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 has also experimented with blockchain services on Azure, but quietly ended its Azure Blockchain Service project in September last year.
According to some reports, Microsoft cloud computing systems have suffered from notable capacity shortages in recent years due to continued supply chain constraints. Apparently, more than half a dozen Azure data centers are expected to remain capped until early 2023.
With the adoption of the new restrictions, Microsoft joins many other cloud computing providers, including Google, which also prohibits customers from engaging in cryptocurrency mining without Google’s prior written approval.. Other platforms like Oracle have completely banned cloud mining, while Digital Ocean also requires written permission.
Cloud mining is an alternative method of investing in cryptocurrencies that allows users to mine digital currencies without using mining equipment or hardware, relying on a remote data center with shared processing power. According to the Blockchain Council research group, Cloud mining is one of the most profitable ways to mine cryptocurrency because it does not require clients to pay for equipment and related costs.
The news comes at a time when the cryptocurrency mining industry is experiencing a major crisis related to the ongoing cryptocurrency winter, with some miners on the brink of bankruptcy due to insufficient funds.
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