Unfortunate, when there is no central control over Domain Name registration this stuff can happen.
Article here
The Libyan Domain Name Registry is grabbing back .ly domain names and stating that less than 4 character domain names in the .ly namespace must be held by Libyan residents. In addition, websites in this domain space must comply with Libyan Sharia Law.
Wondering what impact this will have on bit.ly, owl.ly and ad.ly?
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