Domain registrar RegisterFly.com lost its accreditation with ICANN Friday.

The move came after two years of complaints by registrants of failures, and possibly fraud, on a range of fronts.

ICANN issued a Notice of Breach to RegisterFly on February 21 giving it fifteen working days (3 weeks) to 'cure each identified breach.'

ICANN says RegisterFly has remained in breach, pointing in particular to its failure to unlock Domain Names and provide registrants with authorisation codes.

Co-incidently with the Notice of Breach, ICANN also sent a Notice of Audit that required RegisterFly to allow ICANN to inspect and copy records as well as a notice to submit registrants' data to ICANN or an escrow agent.

Six days after issuing the notices ICANN sent two employees to RegisterFly's offices in New Jersey to audit them and obtain the registrant information. However RegisterFly failed to co-operate.

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On March 1st RegisterFly's lawyers forwarded a letter to ICANN advising that refusal to comply with ICANN's request "should not be construed as my client's unwillingness to cooperate with ICANN but as evidence of their continuing efforts to service their customers."

ICANN responded the following day with a letter setting out additional breaches of the Registrar Agreement. In the letter ICANN described RegisterFly's statement that refusal to comply was evidence of customer service, as "preposterous."

ICANN also threatened to apply for a temporary restraining order requiring RegisterFly to turn over the data requested and to compel an emergency audit of its books and records.

RegisterFly ironically only became an ICANN-accredited registrar barely a year ago. Prior to that it was a reseller for eNom.com.

ICANN, in a letter sent by its general counsel Friday, has told RegisterFly it must cease operating as an accredited registrar by the end of the month.

It would appear ICANN would have liked the termination to be immediate, but it is bound by a 15-day notice clause in its agreement with registrars. ICANN has however ordered an immediate halt by RegisterFly of its use of ICANN trademarks and logo on its Web site.

The embattled registrar is also required to unlock and make available all necessary authorisation codes to allow Domain Name transfers to take place. ICANN says that 'any and all registrants wishing to transfer away from RegisterFly should be allowed to do so efficiently and expeditiously,' between now and the end of the month.

'Terminating accreditation is the strongest measure ICANN is able to take against RegisterFly under its powers,' Dr. Paul Twomey, President and CEO of ICANN said late Friday.

'ICANN has been frustrated and distressed by recent management confusion inside RegisterFly,' Dr. Twomey, said. 'I completely understand the greater frustration and enormous difficulty that this has created for registrants.'

When the Agreement is terminated, ICANN can approve a bulk transfer of all current RegisterFly domain names to another ICANN accredited Registrar.

'Of course, RegisterFly does not have to wait till then. They can request ICANN to approve a bulk transfer immediately. I call on RegisterFly to act in the interests of registrants and seek such a transfer from us straight away,' Dr. Twomey said.

The de-accreditation is a blow to RegisterFly founder, Kevin Medina, who won a bitter legal dispute to resume ownership of the registrar, just a week ago on March 8.

At the time of writing Registerfly.com is continuing to display ICANN trademarks and logos and conveying that it is an ICANN Accredited registrar.

ICANN intends to hold a forum to discuss the reform of the Accreditation policy and process at its Lisbon meeting in a week's time.

A set of questions and points to inform the discussion will be made public prior to the Lisbon meeting.

The Lisbon meeting is one of three meetings held a year by ICANN to meet with global stakeholders. It will take place from 26th to 30th March.