Some big domainregistrars are playing with fire and are - just as the banks and the investors before the crisis - only looking at the short term and the easy criminal money. The are helping online illicit pharmacies to hide from prosecution and are being payed for the whole backoffce (payment) processing that is necessary for those services to function.
When smaller ISP's and hosters or registrars are being dismantled or disconnected because they are infiltrated or used by the online and offline criminal businesses, the rest of the internet can take care of the domaintransfers and the hosting of the legitimate businesses.
THe implication of one of the biggest domainregistrars of the internet in helping and supporting illicit pharmacies can have big implications if one judge in the US decides to condemn for it and call the operation to be criminal. It is not possible to transfer that many domainnames at the present time. Even Knujon.com says that the involvement of enom firms and services in this (by US law) online criminal activity has enormous risks for the whole internet as we know it.
If we stay with the comparaison with the banking sector we will have to make as a community the following decision
Or we are accepting that the 5 biggest registrarservices are changing the domainbusiness in a collective monopoly and we need to regulate them more strictly than others because of that systemic risk.
Or we have to take steps to break them up or liberate the market even more - maybe by limiting the number of domainextensions one may sell or the number of affliates one may have just as we have done in several other industries.
I think that if this choice is put before them that in the end their choice will be the first.