What's the lowdown on a domain registrar getting shut down? Can they be stripped of their authority to spin up new web addresses?

What are the key no-nos that could lead to their downfall?

A domain registrar getting shut down is a serious event that can have significant consequences for internet users. Typically, a registrar's authority to spin up new web addresses is revoked by the relevant regulatory bodies, such as ICANN (Internet Corporation for Assigned Names and Numbers) or the relevant country's domain name authority.

This can happen due to various reasons, including non-compliance with regulatory requirements, financial irregularities, or security breaches. Key no-nos that can lead to a registrar's downfall include failing to maintain accurate Whois records, ignoring ICANN's compliance requirements, and engaging in deceptive or misleading business practices.
When a registrar is shut down, it may lose its accreditation, and its existing customers may need to transfer their domains to a new registrar.

Domain registrars get shut down for any infractions that breach their SLA (Service Level Agreement). If a registrar's DNS (Domain Name System) infrastructure is compromised or they're caught engaging in shady practices like domain squatting or typosquatting, they can face a 'takedown' notice from ICANN (Internet Corporation for Assigned Names and Numbers) or other regulatory bodies.
In extreme cases, a registrar can even be 'delisted' from the global DNS, effectively rendering their services useless.

When ICANN decides to pull the plug on an accreditation agreement before its expiration date, it's usually due to some serious infractions. Here are the reasons why:

The registrar makes a formal request to terminate the agreement, citing irreconcilable differences.

A registrar's application contains false or misleading info, which is a major red flag.

The registrar fails to comply with ICANN's accreditation requirements, and we're not just talking about a minor hiccup.

ICANN receives credible intel that the registrar is about to go rogue and disrupt the internet's stability.

The registrar decides to shut down shop, and we're not getting any more love from them.

Or, in the worst-case scenario, the registrar goes belly up and files for bankruptcy.

ICANN gives the registrar 15 days' notice to dispute the termination in arbitration. But if ICANN thinks the internet's stability is at risk, it can suspend the registrar's accreditation on the spot, with or without notice. In the event of bankruptcy (case 7), ICANN can terminate the agreement immediately, without any fuss.