4 Reasons Crypto Players Skip Casinos with KYC
Posted on April 30, 2019
“Know your customer,” “know your client,” or simply KYC is a procedure carried out by a business to verify the identity of its potential and existing customers. This is done to avoid putting the business at risk of being used by fraudulent individuals for illegal activities like money-laundering.
Additionally, the procedure is one way of protecting the interest of the customers, usually in case of loss of account or fund forfeiture.
In the online betting industry, all the reputable casinos you know do the KYC in compliance with the gaming-related laws within the jurisdictions they target. They are required to get their players’ personal information like name, age, address, and sometimes banking details. They even ask the players to present copies of their valid IDs just to ensure there will be no fraud.
While some cryptocurrency players find KYC beneficial and well-intentioned, others see it as a menace to online betting. Why? Here are the reasons:
#1 Compromised Anonymity
Cryptocurrency was created to facilitate anonymous, not to mention decentralized, payment transactions. This premise is what makes Bitcoin players ask some betting sites, “What’s the point of heavily targeting Bitcoin users if your casino requires us to go through the KYC?”
#2 Fear of Info Exploitation
Easily exposing your identity, more so your banking details, can sometimes turn you into a victim of exploitation.
There were already reports about online casinos using their players’ information in bad faith. Shady activities such as selling of customer database, account hacking, and impersonation have been done several times already. And they may happen to you anytime if you sign up with random casinos without research and caution.
When hassle gets in the way, the player’s interest dies down. No matter how enticing the promos of a betting hub may be, if the process of signing up and cashing out funds is highly time-consuming, you may just decide to turn to another casino.
With KYC, you will have to fill out (usually long) forms, do email confirmations, present copies of valid identification documents, submit a self-taken photo of yourself, and wait long until they say you’re in.
#4 Country Restrictions
There are countries where online gambling is prohibited in all its entirety, just like the US. If you are in a jurisdiction where it is illegal to place bets online, don’t be surprised if during the signup process with a casino, your membership application gets declined after you’ve indicated your address.
With crypto casinos with no KYC, though, there is no discrimination against nationality. You can play wherever you are from. If you fear playing there is illegal, recheck your country’s/state’s gambling laws. Besides, crypto gambling is not technically similar to fiat-money gambling, therefore the usual betting regulations will not apply.
Despite being able to eliminate the items above, a casino with no KYC may still be an unsafe place for your digital assets. All non-KYC-implementing casinos are not licensed by any gambling regulation authorities. So if by any chance you funds get forfeited, your account gets terminated, or any worse case involving your deposited money occurs, there will be no government to help you.
In conclusion, whether you feel secure with KYC-implementing casinos or you find it more convenient to play casino games in no-KYC betting sites, exercising caution is highly advised. To top it off, avoid by all means doing any fraudulent activities when transacting with online casinos.