This is one of the potential drawbacks of using ccTLDs like .io - individual nations are afforded much more control in the administration and dispute resolution process than gTLDs. Unfortunately some are run more poorly than others, which is why in this case the support agent states:
"Unlike common domain names [gTLDs] like .com or .nets. .IO's are managed by a specific organization, that manages only .IO domain names..."
.IO of course being the ccTLD for the British Indian Ocean Territory, run by these chaps: http://www.icb.co.uk/
At any rate, it's worth bearing in mind that ccTLDs are not administered the same way as a gTLD, and weird issues like this that are a pain to resolve can happen.
And every couple of years someone finds this out the hard way and goes on a big rant like this one. Particularly with the .IO ccTLD. Or .LY.
It tells me that the person running the business isn't very good at estimating the business risk of the technology they're using. That's when I start hoping I'm not a customer of theirs and invariably find out that I'm not. Phew.
"Unlike common domain names [gTLDs] like .com or .nets. .IO's are managed by a specific organization, that manages only .IO domain names..."
.IO of course being the ccTLD for the British Indian Ocean Territory, run by these chaps: http://www.icb.co.uk/
At any rate, it's worth bearing in mind that ccTLDs are not administered the same way as a gTLD, and weird issues like this that are a pain to resolve can happen.