Each ccTLD is delegated to a competent operator within the country it is designated. In almost all cases (except some historic ones) this is to an entity with a

Each ccTLD is delegated to a competent operator within the country it is designated. In almost all cases (except some historic ones) this is to an entity with approval of the national government of the country. They in turn set their own regulations on domain eligibility criteria, pricing and so forth. So when you buy a .ME domain, you are subject to the relevant law and regulation of Montenegro, for .CO in Colombia, for .LY in Libya and so forth. If those countries elect to allow registrations outside their borders, that is their choice, but there is no external regulation on how they do that. They are accountable internally to the local Internet community of the country, and the local laws. ICANN, on the other hand, is responsible for regulating many aspects for generic top-level domains (currently TLDs with 3 or more characters, such as .COM, .NET, .INFO).