Could Your .ly Domains Be Deregistered?

Could Bit.ly and other services that use the .ly domain suffix be at risk of losing such URLs? Word is going around that the domain name vb.ly was recently seized by NIC.ly, the domain registry and controlling body for the Libyan domain space due to the content on his site which is in violation of Libyan Islamic/Sharia Law. Of course, violating laws isn’t encouraged, but the owner claims that NIC.ly wants to regulate content that use a .ly domain and also might want to limit the availability of .ly domains with less than four letters. Would Bit.ly have to worry about such a thing happening to it?