FTLD Registry Services will restrict the use of domain names for cryptocurrency companies

The fTLD Registry Services Domain Name Service has announced its intention to limit the use of domain names to “universal banking service providers.”

The reason for this decision was the expected increase in the number of applications for .bank and .insurance domain names from cryptocurrency firms. The .bank domain was originally reserved for state-controlled retail banks, savings associations, national banks, or bank holding companies. FTLD Compliance Director Heather Diaz said:

“As the financial services industry has evolved, especially in the area of ​​fintech, companies have appeared offering financial products and services (for example, P2P payment providers and cryptocurrency companies). We found that some potential applicants wanted to register such domains in order to increase their market legitimacy for regulators and consumers. ”

Restoring old restrictions, fLTD is trying to “further protect the reputation of credible domains,” Diaz said. P2P payment providers, money transfer companies, and microloan providers will be limited. At the moment, the company has not yet officially introduced restrictions, however, it opened a public discussion of this issue until August 24.

Diaz also stated that so far the fLTD has not approved a single cryptocurrency company application for the .bank domain name. Note that using such a domain costs about $ 1,000 per year.

The fintech and cryptocurrency industry has shown significant growth in recent years, and the desire of fLTD to protect domains from unscrupulous market players is understandable. In the spring, it was reported that companies spent $ 42 million on lobbying for cryptocurrencies and fintech in the first quarter of 2019.