Microsoft Steps Up Restrictions Against Crypto Mining

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The ongoing ban began without public notification, as reported by The Register.

According to Microsoft’s new product terms update, cryptocurrency mining is prohibited on Microsoft’s online services without prior permission. Miners are required to obtain written approval from the company to use Azure software for cryptocurrency mining.

Updated Acceptable Use Policy to clarify that cryptocurrency mining is prohibited without Microsoft’s prior consent. Neither Customer nor those who access an Online Service through Customer may use an Online Service… to mine cryptocurrency without the prior written approval of Microsoft, as set forth in the update to the Politics.

The game is rough

The update, which is valid from December 1, aims to protect customers from cybersecurity risks that illegally disrupt and steal customer properties.

Microsoft Online Services is a cloud-hosted service provider that plays a key role in the Microsoft suite. Microsoft Azure is a well-known cloud computing platform for offering crypto mining, in addition to a suite of tools that help customers process, store, and manage data.

Mining on virtual machines was a good alternative method without the need for heavy physical machines or hardware. Cloud solutions have given users great ways to mine cryptocurrencies while saving on expenses.

Besides the ming capability, Azure reportedly piloted the Azure Blockchain service in 2019 as a supply chain management solution, with Starbucks being its first customer.

However, the tech giant announced that it had ended the initiative after 6 years of operation, citing changes in the industry and declining interest in the product.

Microsoft has partnered with other big companies, including Amazon’s Google and AWS. Google banned crypto mining without written permission from its cloud services to protect customer accounts while Amazon removed the feature from its 12-month free trial subscription.

Mining difficulties

The news sparked both speculation and criticism within the crypto community, particularly regarding the source of the news, which claimed that Microsoft secretly implemented the policy.

According to speculation from The Register, one of the motivations behind the move is the prolonged downward trend in market prices.

Over 80% of Bitcoin’s value, along with that of other cryptocurrencies, was wiped out by the end of 2022. The mining industry suffered from the negative trend.

A number of Bitcoin miners like Core Scientific, Iris Energy, and Argo Blockchain encountered a roadblock and were reportedly on the verge of collapse.

In light of the winter market, many miners find themselves at a crossroads as they also face an increase in their monthly electricity bills on top of the extreme difficulty of mining.

According to the Bitcoin Mining Council’s Q3 report, Bitcoin’s energy consumption has increased by 41% over the past year.

The rising cost of electricity, combined with the fact that the difficulty of the algorithm has remained the same, is causing Bitcoin mining revenue to drop to levels not seen in the past two years.

Revenue from bitcoin mining is calculated by multiplying the value of block rewards and transaction fees by the price of bitcoin.

According to experts, the reason why the price of BTC is now higher than two years ago but the income of miners is decreasing is due to the difficulty of mining as well as the continuous rise in the price of BTC. electricity.

Bitcoin mining difficulty has reached an all-time high, straining miners. This forces them to spend more money upgrading their machines to stay competitive on the network.

To maintain their operations, Bitcoin miners have had to sell off much of their BTC supply. Microsoft may be worried that miners won’t pay their cloud bills, the source suggested.

There is also speculation that Azure has a capacity shortage and restrictions on crypto mining may reduce demand.

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