Microsoft has updated its licensing agreements, prohibiting the use of its online services for crypto mining. Any customers who wish to continue mining cryptocurrencies on a Microsoft-hosted service will first need to obtain written permission from the company, but this will only be considered for „Testing and Research to Detect Security Issues.“
As The Register reports, Microsoft has updated its online universal service license terms for its Azure and Dynamic 365 range of services, effectively banning cryptomining without the company’s prior approval. The ban covers any „Microsoft-hosted service to which the customer subscribes under a Microsoft volume license agreement.“ The updated document applies mostly to Azure and went into effect on December 1.
The „Acceptable Use Policy“ section states: „In the event that it is not possible to use, the following must be done: „Neither the Customer nor those who access an online service through the Customer may use the online service: for mining of cryptocurrency without Microsoft’s prior written approval.“
Microsoft seems to have slipped much of the update under the radar. But in a partner community post yesterday, Danail Biktimirov, Microsoft’s head of channel sales, wrote that the updated policy is to explicitly ban cryptocurrency mining on all Microsoft online services.
The Redmond-based giant told The Register that it made the change because cryptocurrency mining could disrupt or degrade the quality of its online services. He added that users can often be linked to cyber fraud and abuse attacks, such as unauthorized access to and use of client resources.
Microsoft joins Google Cloud in requiring users to obtain written permission before starting to mine cryptocurrencies, as does Digital Ocean. Oracle and OVH don’t allow it at all, and Amazon Web Services doesn’t allow it in their free tier.
The crypto industry is in crisis right now. Governments are rushing to introduce tighter regulations following the failure of crypto exchange FTX, which recently led to the arrest of Sam Bankman-Fried on fraud and money laundering charges. TechSpot also reports on miners unable to repay millions in loans and being forced to surrender their mining rigs that were used as collateral. With digital asset prices collapsing, cryptomining is no longer as lucrative and secure an activity as it once was – all of which may have played a role in Microsoft’s decision, but it’s only about the safety of customers and the online services offered by the company.