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Cryptocurrency firms to be banned from .bank

The registry for the already heavily restricted .bank and .insurance gTLDs wants to change its policies to make it clear that cryptocurrency firms are not welcome.

fTLD Registry Services has opened up a public comment period on proposed changes to its eligibility policies for the two TLDs which would drop the “service provider” category of registrant.

It would also clarify that eligible entities have to be “retail” banks regulated by a proper government authority.

The elimination of “service providers” is an effort to clarify that .bank is for banks and not peer-to-peer or cryptocurrency payment providers.

Heather Diaz, senior director of compliance and policy at fTLD, told us that the service provider category was created to allow “banking core processors” and the like to register domains. She said in an email:

More recently, as the financial services arena has evolved, particularly as it relates to fintechs offering financial products/services (e.g., P2P payment providers, cryptocurrency companies), we have found that some prospective Registrants were seeking domains to enhance their legitimacy to market to regulated entities and/or consumers.

By eliminating the category, fTLD hopes to clarify that .bank is just for regulated banks.

Registrants that already own service provider domains (it sounds like there are only one or two) would be grandfathered under the proposed policy, so nobody’s going to lose their existing domains.

The proposed changes were boiled up by fTLD’s bank-led Advisory Committee and its board of directors.

Comments are being accepted until August 24, after which the company’s board will decide whether to implement the new policies.

Registrars object to “unreasonable” .bank demands

Registrars are upset with fTLD Registry Services for trying to impose new rules on selling .bank domains that they say are “unreasonable”.

The Registrar Stakeholder Group formally relayed its concerns about a proposed revision of the .bank Registry-Registrar Agreement to ICANN at the weekend.

A key sticking point is fTLD’s demand that each registrar selling .bank domains have a dedicated .bank-branded web page.

Some registrars are not happy about this, saying it will “require extensive changes to the normal operation of the registrar.”

“Registrars should not be required to establish or maintain a “branded webpage” for any extension in order to offer said extension to its clients,” they told ICANN.

i gather that registrars without a full retail presence, such as corporate registrars that sell mainly offline, have a problem with this.

There’s also a slippery slope argument — if every gTLD required a branded web page, registrars would have hundreds of new storefronts to develop and maintain.

fTLD also wants registrars to more closely align their sales practices with its own, by submitting all registration requests from a single client in a single day via a bulk registration form, rather than live, or pay an extra $125 per-name fee.

This is to cut down on duplicate verification work at the registry, but registrars say it would put a “severe operational strain” on them.

There’s also a worry about a proposed change that would make registrars police the .bank namespace.

The new RRA says: “Registrar shall not enable, contribute to or willing aid any third party in violating Registry Operator’s standards, policies, procedures, or practices, and shall notify Registry Operator immediately upon becoming aware of any such violation.”

But registrars say this “will create a high liability risk for registrars” due to the possibility of accidentally overlooking abuse reports they receive.

The registrars’ complaints have been submitted to ICANN, which will have to decide whether fTLD is allowed to impose its new RRA or not.

The RrSG’s submission is not unanimously backed, however. One niche-specializing registrar, EnCirca, expressed strong support for the changes.

In a letter also sent to ICANN, it said that none of the proposed changes are “burdensome”, writing:

EnCirca fully supports the .BANK Registry’s efforts to ensure potential registrants are fully informed by Registrars of their obligations and limitations for .BANK.  This helps avoid confusion and mis‐use by registrants, which can cause a loss of trust in the Registry’s stated mission and commitments to the banking community.

fTLD says the proposed changes would bring the .bank RRA in line with the RRA for .insurance, which it also operates.

The .insurance contract has already been signed by several registrars, it told ICANN.