CNNIC: .CN Domain Names Limited to Business Entities; NameRich.cn Suspended

CNNIC has had an uphill battle to preserve the reputation of .CN domain names. Previously linked with unsavory porn sites and fraudulent schemes, a recent report by China Central Television once again linking .CN domains to porn sites was the straw that broke the camel’s back. CNNIC decided to buckle down and restrict those who can register .CN names with the goal of restoring the reputation of .CN.

As earlier reported by China’s Global Times and by Michael Berkens, only those entities with a business license now could maintain ownership of .CN names.

Unfortunately, this backwards regulation was implemented just as .CN domains begun to be recognized as the market leader in China with registrations topping 10 million. There are plenty of individuals running hobby sites or sole proprietorships without a business license who will now might have their domain names seized. Namerich.cn, a leading .CN registrar was suddenly suspended from registering .CN domains this past Friday as a rumored sanction for their lax scrutiny of registrants.

As Berkens wisely points out “one of the downsides to ccTLD’s is that they are subject to the regulation of the governing jurisdiction, which can place rules they wish on the acquisition and ownership of them.” In my opinion, IDN investors should maintain portfolios that favor IDN.com’s rather than IDN.ccTLDs to protect themselves from provincial restrictions such as this one.