The Ultimate Guide to KYC Requirements

While many think crypto is all about coins and tokens, it is more than that. Of course, there are token aspects, such as Bitcoin, Ethereum, and others, but crypto has many more aspects to offer, like dApps and crypto gaming.

Crypto gaming is perhaps one of the most underrated parts of the industry, but it has now become one of the hottest aspects of crypto. Crypto casino gaming is an even bigger deal than most people make it out to be. According to Playtoday, the current market was worth $263.3 in 2023 Q4.

There are an estimated 60 million players, and while they all play different casino games, theres one thing they can agree on, "KYCs can be kind of a bummer" even if they are necessary. But what exactly are KYCs and what do they do? Read on to find out more.

What is KYC?

While it sounds like the next-door neighbor of NYC, KYCs are not an American city. KYC is mostly a fancy acronym for “Know Your Customer.” It’s the process by which a platform finds information about the customers using their services.

The rationale behind them is the verification of identity, and in this world full of many social media bots and fake profiles, you might be inclined to agree that this is a good idea. But is it?

Why is KYC Implemented?

Knowing Your Customers does not sound like a bad idea, does it? It’s just a company wanting to know a thing or two about its customers. But KYCs are more than just for introductions. There are many other reasons why KYCs are implemented, and they include the following: 

Verification of identity

The online world is perhaps the easiest place to hide who you are. Anyone can pretend to be any other person or hide behind avatars; all it takes is a username and an avatar image. Individuals are usually required to provide government-issued identity documents to verify and prevent stolen and false identities.

Risk assessment 

While it’s fun to imagine that the internet is filled with gun people, everyone knows that the internet is also home to criminals. These “higher risk” individuals are subjected to stricter KYC-related background checks for the safety of other platform users.

Better security

Knowing a customer's basic information adds an extra layer of security to online casino platforms. Features such as multi-factor authentication help reduce the risk of unauthorized access. Making the platform safer for users.

KYC at Crypto Casinos

Generally speaking, many people don’t like KYCs for many reasons, such as data privacy. If there’s any online platform that collectively does not like KYCs, it would be crypto casinos.For numerous reasons, online casino customers do not like KYCs. These customers just want to have a good game and make money, and KYCs can be time-consuming, apart from the fact that some of them are a bit complex. 

Regardless of these facts, some crypto casinos implement KYCs, whether they are fun or not. Many top-rated casinos hold licenses, such as Curaçao, which are in line with the Regulations for Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT).

KYC Typical Process

There’s no one-size-fits-all approach to KYC procedures. The questions vary from platform to platform, but the general idea is the same. Here’s a typical example step-by-step: 

1. Initial KYC request. At the initial stage, you’ll be asked your name, surname, and address—the typical questions anyone would ask.
2. Document request. The second stage is where it starts to get more intense. You will likely be asked to submit proof of identification via ID or a Passport. It’s just to match the previous details you imputed with government-approved documents. As for the address, you might have to submit a utility bill, so as long as you pay your water and electricity bill, you should be fine.
3. Internal verification. After submitting your details and documents, the casino platform will need to verify the authenticity of your information. While some fast KYC verification casinos can verify you in a jiffy, it might take a few days for others. Don’t be alarmed if it takes long; your information is not going through the FBI; they’re just double-checking.
4. Results. The last stage is where the platform lets you know whether you passed the verification. If you pass, you should be given full access to all the platform’s functionalities, including withdrawing earnings. However, if you fail, you might need to try again or submit further documents.

KYC and Privacy

KYC and Privacy are two opposite sides of a coin or two parallel lines that can never meet. The whole point of KYCs is to KNOW and the entire point of privacy is NOT to KNOW, so obviously, something has to give. 

One of the things that makes crypto appealing to many people is the privacy it offers, and crypto casinos are just giving all that away with their KYCs. So, how do users deal with this dilemma? 

Users can avoid this problem by using only sites that do not support digital identity verification gambling or user verification in blockchain gambling, or they can opt for a decentralized casino instead since they have no central authority. 

Casino regulatory requirements like KYC are not always necessary on every platform. But while a No KYC platform sounds great, there are some really good aspects of it that you might be missing out on, and we’ll talk about them in the next section.

Exploring the Benefits of KYC

Yes, KYCs may mean a lack of privacy, but sacrificing your privacy also brings other benefits. Here’s a few of them;

Security

KYC and AML in blockchain casinos are some of the strongest means of ensuring security. They may violate privacy, but they do help ensure that everyone is who they say they are and cut the chances of running into criminals. They are also a green flag of an anti-money laundering platform. A no-KYC casino may give you privacy, but it’s also a no-man’s land where just about anything can happen."

Equality and fairness

KYC checks in gambling eliminate the possibility of multiple identities since you can only use one set of documents to register one account. This means that nobody can use dual accounts to boost their chances, and everyone gets just about the same opportunities.

Account recovery

Not many things hurt as much as forgetting the password to an account, especially when it involves money, such as your gambling account. Filling out KYCs can help you recover your account by verifying your documents and giving you access to your account again. 

Easy KYC Tips to Get Verified without Hassle

KYCs are not exactly the hardest things to navigate, but as easy as they seem, it is also very easy to make a mistake that might cost you dearly or, at the very least, some of your earnings.

1. Be honest. No one likes a liar, not even KYC requirements. It is always better to answer all questions honestly, including names, countries of origin, etc. If you put in false information, it is more than likely that you will get caught when uploading your documents. And that also means no Fake IDs.
2. Don't use VPNs. VPNs are the cool cloaks of invisibility on the internet, but they might do you more harm than good when it comes to crypto casinos. While VPNs ensure privacy in KYCs, if a casino site does not support your country, you might be better off finding a secure platform that does. Changing your location with a VPN might mean losing all your money if you fail the verification checks.
3. Test the waters. KYC solutions for online casinos are sometimes not easy to pass, and if they come after you have already deposited money, failing them might mean losing access to your money. 

To avoid this undesirable scenario, it is better to deposit a minimal amount to trigger the KYC. Then, if you end up failing the KYC, you don’t take on much loss. If you do pass, then the world’s your oyster, and you can then go forward to deposit any amount you feel comfortable with.

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