Why Microsoft banned crypto mining for its online services

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According to The Register’s report, tech giant Microsoft has banned crypto mining from its “Azure” cloud services. The company updated its Universal License Terms for Online Services, released in early December, to include the new policy.

Now, Azure customers will need to seek permission from Microsoft before using its services for crypto mining. The company says the measure will protect users from industry-related risks and activities. Microsoft’s new policy reads as follows, according to the report:

Updated Acceptable Use Policy to clarify that cryptocurrency mining is prohibited without Microsoft’s prior approval. Neither Customer, nor those who access an Online Service through Customer, may use an Online Service: to mine cryptocurrency without Microsoft’s prior written permission.

The price of BTC is moving sideways on the daily chart. Source: BTCUSDT TradingviewMicrosoft Joins Others in Banning Cryptocurrency Mining in the Cloud

The company has provided few details regarding its new policy against crypto mining. Customers have been notified via an updated Terms of Use Policy as mentioned above, the Summary of Changes page, and a document sent to its partners.

Microsoft has pushed the policy to “secure” its cloud ecosystem. The company says crypto mining can “disrupt” or “impair” its online services. Additionally, the company believes that crypto users can “often be linked to cyber fraud and abuse attacks.”

Government officials and regulators often use this argument to dismiss the fledgling industry as illegitimate and classify its activities as criminal. Additionally, Microsoft, Google, Amazon, Digital Ocean, and OVH have banned crypto mining from their cloud services to some extent.

The company has stated the following regarding its policy:

We made this change to further protect our customers and mitigate the risk of disruption or degradation of services in the Microsoft Cloud. Permission to mine cryptography can be considered for testing and finding security detections.

Crypto Winter Impacts Cloud Crypto Mining

Unlike Microsoft, Google and other tech giants banned crypto mining from cloud services some time ago. Thus, The Register speculates that the change in their policy is related to the downward trend in digital assets.

Since the end of 2021, Bitcoin and other cryptocurrencies have lost more than 80% of their value. The negative trend has had an impact on the mining industry.

Bitcoin miners have had to auction off much of their BTC supply to maintain operations. Therefore, the report notes that “Microsoft may be concerned that miners are not paying their cloud bills.”

The report assumes that Azure, the company’s cloud services, may face capacity shortages. Thus, the company could reduce demand by cutting off the crypto mining sector.

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