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I've used a .ly domain for the past 6 months or so with no issue.

The service is a bit sketchy: not very good instructions and less than user friendly control panel. You also have to provide your own dns servers. After you jump through those hurdles it seems to work fine.

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Yes, I've already set up my .ly domain, but I'm more concerned about legal and ethical issues going forward if I use it as my primary domain name.

The Wikipedia article on Libya describes some positive political movement as well as some current negative conditions. But I know very little about modern Libya and hoped to get more input on the country.

Well, read up on Gaddafi and decide whether you're willing to indirectly trade with the country he runs or not. Ultimately that's an ethical decision only you can make, but I think you should make it based on your informed personal view rather than what your customers might think.

I joke that my domain purchase may or may not indirectly fund state-supported terrorism.

As far as my customers are concerned though, I think you'd be hard-pressed to find that 1% knows that .ly is Libya.

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