BitLocker can be used as a cryptographic module to fulfill FIPS 140-2 security level 1 compliance.
What if the encrypted drive is on a virtual machine, is that still FIPS 140-2 compliant?
In one BitLocker virtual machine setup, one of the drives or volumes on the virtual machines' host can acts as a cryptographic key provider to hold the cryptographic key.
The only problem is that this kind of seems like BitLocker implementation mostly subverts the protection that BitLocker is providing in the first place.
In the article entitled "BitLocker Drive Encryption in Windows 7: Frequently Asked Questions" microsoft states that they do not support the use of BitLocker on a virtual machine.
Can I use BitLocker within a virtual machine operating environment?
BitLocker is not supported for use within a virtual machine. Do not run BitLocker Drive Encryption within a virtual machine. You can use BitLocker in the virtual machine management operating system to protect volumes that contain configuration files, virtual hard disks, and snapshots.
But what does this mean for FIPS 140-2 compliance and a virtual machine?
If Microsoft does not support it, is BitLocker still FIPS 140-2 compliant in a virtual machine?