Sure, why wouldn't it? It would be a US based LLC with the proper US licensing and insurance and hosted in the US.

According to the US State Department "Libya remains on the list of designated state sponsors of terrorism."

Since part of the registration fees go directly to the government, registering a .ly domain is about the shortest route you can take to get funds into the hands of terrorists planning attacks on western countries without being subjected to a criminal investigation in the US.

It is fun to play pretend on the internet that your actions have no impact on the real world, but you should take a few minutes to reflect on what your business is supporting.

Buying domains supports terrorism, so does paying Tax's http://en.wikipedia.org/wiki/United_States_and_state_terrori...

If it was such a wide spread problem, an issue to fight for, the US government disallow any payments to Libya from US banks.

Sorry you feel that way. I'm just looking to launch a payment type of business and am looking for feedback on what people would do if they had the chance.