Cloud Computing giant Microsoft is taking measures to ensure the stability of its online services by implementing restrictions on activities like cryptocurrency mining.
The Register, a British technology news outlet, reported Dec. 15 that Microsoft has quietly implemented new rules barring cryptomining in its services.
The company made the changes as part of its Microsoft Online Services Universal License Terms. Microsoft updated its acceptable use policy on December 1 to make it clear that “cryptocurrency mining is prohibited without prior approval from Microsoft.”
In the “Acceptable Use Policy” section, Microsoft now requires that customers gain written authorization from the firm before using any of its products for crypto mining.
“We made this change to further protect our customers and mitigate the risk of interruption or deterioration of services in the Microsoft Cloud.”
The move was reportedly designed to shield its online services from cyber fraud, attacks, and unauthorized access of customer resources.
Microsoft did not respond immediately to Cointelegraph’s request for comment.
Microsoft Online Services is part of the company’s Software-as-a-Service strategy and includes its Azure cloud computing network, which offers cryptocurrency mining for certain types of subscriptions. As previously reported, Microsoft quietly ended its Azure Blockchain Service project in September last year.
According to reports, due to supply chain constraints, cloud computing systems have experienced notable capacity shortages in recent times. More than half a dozen Azure data centers are likely to remain uncapped until 2023.
By adopting the new restrictions, Microsoft joins other cloud computing providers such as Google which also prohibits customers from engaging in cryptocurrency mining without prior written approval. Platforms such as Oracle have completely banned cloud mining, while Digital Ocean requires written permission.
Related: Nasdaq Warns Bitcoin Mining Firm Bitfarms About Stock Price Deficiency
Cloud mining is an alternative way to invest in cryptocurrency. It allows users to mine digital currency without the need for expensive mining equipment. According to blockchain research group Blockchain Council, cloud mining is one of the most profitable methods to mine digital currency. It doesn’t require customers to pay for equipment and associated costs.
The news comes amid a crisis in the cryptocurrency mining industry. Many miners are in danger of bankruptcy due to lack of funds.
