Microsoft Blocks Crypto Mining Activities Using Cloud Services

JAKARTA - Cloud computing giant Microsoft is taking steps to improve the stability of its cloud services by imposing new restrictions on activities such as cryptocurrency mining.

According to a report by British technology news agency The Register on December 15, Microsoft has quietly banned crypto mining from its online services to better protect its customers and cloud.

The company introduced new restrictions as part of the Microsoft Online Services universal license terms. Microsoft updated its acceptable use policy on December 1 to clarify that “mining of cryptocurrency is prohibited without Microsoft's prior approval.”

In its "Acceptable Use Policy" section, Microsoft says that it now requires users to obtain prior written approval from the company to use any Microsoft Online Services for crypto mining.

Microsoft reportedly said that its latest crypto mining restrictions aim to protect online services from risks such as cyber fraud, attacks, and unauthorized access to customer resources.

"We made this change to better protect our customers and reduce the risk of disrupting or disrupting services in the Microsoft Cloud," Microsoft said as quoted by Cointelegraph.

The company also reportedly noted that they might consider a license to mine crypto for testing and research purposes for security detection. However, 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 types of subscriptions.

As previously reported, Microsoft also experimented with blockchain services on Azure, but quietly discontinued the Azure Blockchain Services project in September last year.

According to some reports, Microsoft's cloud computing systems have experienced a marked shortage of capacity in recent years due to ongoing supply chain constraints. More than half a dozen Azure data centers will reportedly remain limited until early 2023.

By adopting the new restrictions, Microsoft joins many other cloud computing providers, including Google, in also prohibiting customers from engaging in cryptocurrency mining without Google's prior written approval. Other platforms such as 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 coins without using mining equipment or hardware, relying on remote data centers with shared processing power.

According to blockchain research group Blockchain Council, cloud mining is one of the most profitable ways to mine cryptocurrencies as it does not require customers to pay for equipment and related fees.

The news comes amidst the cryptocurrency mining industry going through a major crisis related to the current cryptocurrency winter, with several miners on the verge of bankruptcy due to insufficient funds.