According to a recent report, Crypto and blockchain-related companies are likely to get banned from registering a domain name that ends with the .bank and .insurance extensions.
According to an announcement made by fTLD Registry Services, a domain name system (DNS) registry, it is on track to restrict the DNS extensions from generic banking “service providers.”
Reportedly, this move comes right after it was made known that there has been an increase in the number of applications for .bank domain names by crypto firms.
Originally Reserved For Traditional Financial Institutions
Initially, these two domain extensions were reserved for government-regulated retail banks, savings associations, national banks, or bank holding companies.
However, this has changed as there has been recorded of registration from entities not related to the aforementioned ones.
According to fTLD director of compliance and policy, Heather Diaz:
“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.”
Once the old and original restrictions are put in place, fLTD would have “further secure these trusted spaces, ”.
Despite the uptick in crypto companies looking to register using these extensions, the registry has never accepted a crypto company’s application for the domain name according to Diaz.
The name costs approximately $1,000 to host per year.
Other entities expected to be affected by the incoming restrictions are P2P payment providers, money transfer businesses, and microloan providers.
Importantly, the restrictions are not yet in effect, at least formally. However, the organization has opened the decision to public comment until August 24.
Also, competing registrar EnCirca, launched an ethereum naming service (ENS) to provide domain names at .eth locations in July.
Interestingly, according to fTLD data, EnCirca currently hosts 61 percent of the .bank domain names registered.