The fTLD Registry Services domain name service has announced its intention to restrict the use of domain names for “universal banking service providers”.

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

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

By restoring the old restrictions, fLTD is trying to “further protect the reputation of trusted domains,” Diaz said. The restriction will apply to P2P payment providers, money transfer companies, and microloan providers. At the moment, the company has not yet officially introduced restrictions, but it has opened a public discussion of this issue until August 24.

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

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