> Then the problem is the use of stolen credit cards, not crypto mining. I could just as easily spin up a botnet, or scammy gambling/warez site, or a spammy email campaign, or a myriad of other things that could negatively impact the business’s finances or reputation. The right way to address this issue is to improve the KYC process so that such cards cannot be so easily used in the first place.

Improved KYC process is easier to say than to do without chasing off customers. I'm not going to participate in much in the way of KYC in order to get a $7/month VM. If they want to see my government issued identification, I'll find someone else to sell me a VM, it's a crowded field (and I'll be leaving anyway, since they are dropping support for my preferred OS; once I decide on which of the many others to move to)

Spammy email is usually solved by restricting port 25 access. It's amazingly common to have that port blocked for new accounts in hosting. Botnet or scam sites don't really have a major cost for the hosting company; maybe you have to field a couple abuse reports, but nobody is going to blacklist your IPs for that, and they don't tend to use a lot of power or bandwidth, so it's not a big cost.