EscrowDNS.com Temporarily Suspends Fresh Service
Owner cites state regulations for temporary shutdown.
Upstart domain escrow service EscrowDNS.com has temporarily suspended fresh service, citing state regulations:
EscrowDNS is temporarily ceasing operation of it’s (sic) domain name escrow service. Any outstanding transactions will be completed as always, no fresh transactions will be allowed. A number of states have vague or modified escrow laws for Internet firms offering escrow services. For this reason, we will be closing our doors temporarily until all permits and surety bonds are in place. We have strived since the beginning to stand out as a domain name escrow service that cared regarding your transactions and I feel we have accomplished that mission thus far. When we re-launch we will have a completely fresh site design with added features and will offer our first month “escrow fee free.” In the meantime, we recommend that you use www.Escrow.com for your domain name escrow transactions. They offer a reliable service and prompt client support. We would like to thank everyone for their continued support.
A number of states have regulations for escrow services, and it would appear that EscrowDNS is getting itself in compliance with state rules. In an interview with Reglike earlier this year, Escrow.com president Brandon Abbey stated regulations can be a hurdle for any fresh escrow service:
…You will notice that some escrow firms do not offer services in California and Arizona. This is since they do not have the appropriate licenses. These firms are not subject to the same stringent regulations we are. If an unlicensed escrow firm were to perform escrows for a California buyer or seller they would be in violation of the Financial Code. The potential penalty is a fine, not to exceed $10,000, imprisoned in county jail for up to a year, put in state prison or punished by both fine and imprisonment. Arizona penalties appear to be just as severe and Idaho also requires an escrow license.
In the 2009 Reglike Survey, EscrowDNS garnered 5% of the vote for best escrow service despite entering the market late last year.
[Via DotWeekly (link removed since no longer active)]
