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I understand that ICANN does make the rules requiring this, but I don't understand why we have to? Each time we do transfer the domain, we have to pay to do so. That partially stops fraud. I also do know that it can take from a few hours to a month for the transfer process to be completed on both ends.

Why do we have to wait 60 days between each domain transfer?

Also, allow me to quote the ICANN FAQ

If I bought a name through one registrar, am I allowed to switch to a different registrar?

Yes. The Inter-Registrar Transfer Policy, applicable to all ICANN-accredited registrars, provides that registered name holders must be able to transfer their domain name registrations between registrars. You must wait 60 days after the initial registration or any previous transfers to initiate a transfer.

It states that it is a requirement without an understanding of the reason why it is.

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I think this was written to stem the tide against domain hi-jacking. There may be controls in place now that make this unnecessary. I cannot tell you without digging further, but I do know that some registrars are extremely careful about transferring domains and put some security measures in that seem very tight. Perhaps this rule is no longer needed. But then again, there may still be some sleazy registrars out there too. Good point! I would also like to see domain tasting banned. So maybe a re-write is in order. – closetnoc May 13 '14 at 5:24
up vote 7 down vote accepted

Here is a Guardlex article that claims that it is to prevent domain hijacking:

Once a hijacking has been discovered, the responses to it tend to vary. The registrar is sometimes able to return the registration to its original state. However, if the domain name was transferred to a different registrar, this can prove to be difficult. This is especially true if the registrar is in a different country. There have been many cases where the original owner of the domain has not been able to regain control over a domain that was hijacked.

The Internet Corporation for Assigned Names and Numbers (ICANN) requires that there must be a waiting period of 60 days between the time that the registration information is changed and when it is transferred to a different registrar. By doing this, the process of hijacking a domain becomes a tougher task. This is because there is a good possibility that the original registrant will notice the problem during the 60-day window and alert the authorities about the issue. A domain that has been transferred is also a lot harder to reclaim. This is another reason that this method reduces the risk of domain hijacking.

If a domain name were hijacked and the hijacker were able to transfer it several times, getting it back would need to involve all the registrars to which it was transferred. The process should be simpler if there are only at most two registrars that need to cooperate for the solution.

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Understandable, but at the same time, being social engineered is the person's fault and I have yet to hear of an exploit in systems that handle domains. I will go for this answer, my friend. – Traven May 13 '14 at 9:53

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