The company has announced it'll no longer register new domains in the People's Republic -- and it has some strong reasons why.

GoDaddy divulged its decision during a congressional hearing on Wednesday. Christine Jones, the company's executive VP, delivered a prepared statement explaining the shift in strategy.

The nine-page testimony details an apparent change in Chinese law that requires GoDaddy to now collect color headshot photos of all users trying to register new domains. In addition, the company must obtain business identification documents and physically signed registration forms from all of its Chinese customers.

Here's the kicker, though: All that data has to be forwarded on to China's government-run Internet Network Information Center (CNNIC) for "review."