Reasons for KYC procedure in Crypto Gambling
The internet gaming industry was hammered hard recently. One of the reasons why online gaming become so popular is that it is fast to absorb new technology. As a result, gambling companies are constantly ready to make their customers feel at ease.
Cryptocurrencies are the latest addition to online casinos’ offerings. As a result, the number of crypto casinos is rapidly increasing, allowing customers to use their unique characteristics.
It’s good to use virtual currencies for online gambling because they give some people the privacy they want. They also make sure that payments are safe and cheap. However, users are still at risk, even though digital coins are thought to be more secure than fiat money. So, regulators started making rules to protect people who gamble on crypto gaming websites.
The industry is now putting procedures called “Know Your Customer” (KYC) for gambling sites and crypto exchanges to make them more secure. But what is KYC exactly, and why use it in crypto gambling?
What is KYC in Online Gambling?
KYC is a thorough procedure that collects player information upon registration, login, and deposit or withdrawal. Most sites allow players to skip the registration process and play real-money games without providing ID. However, before withdrawing any cash from the site, users must complete the verification procedure.
Basically, KYC is as simple as giving copies of specified papers to prove account ownership. In addition, forms containing personal information, contacts, addresses, or emails are often requested to be filled out.
Online casinos need KYC to prevent the danger of fake accounts. Banks and financial organizations have been doing this for years, and now online gaming and crypto are following.
Reasons for KYC in crypto gambling
The KYC procedure is critical in promoting responsible gaming and safer gambling standards. Additionally, KYC enables the tracking of problematic players and the protection of minors from gambling goods. Several advantages of the KYC procedure in gaming include the following:
- Avoiding Scam
Gaming operators may obtain enough identifying information about their consumers via KYC. In addition, autonomous bots acquire information about the browser type and other activity data. This information is vital when investigating a legal problem or a probable fraud.
- Anti-Laundering
Gaming sites attract money launderers because they make it seem like the revenues come from gambling. The KYC keeps track of player behavior and may issue alerts if certain moves are spotted. So, it prevents money laundering or other criminal activity performed via online casinos.
- Self-Exclusion
KYC data is a self-exclusion program where gamers may join a database of prohibited people. With the help of KYC, casinos can quickly get players’ information and deny access promptly.
- Safeguarding minors and vulnerable gamblers
Gambling must be safer for children and vulnerable players. The KYC method is the only way a gambling operator can verify an account holder’s age. KYC also helps operators protect problem players by limiting games and bonuses or stopping them from playing for real money.
Is KYC mandatory?
Companies spend a lot each year to guarantee that laws and regulations are followed. The online gambling industry is no exception since it is one of the most heavily regulated sectors in the world.
So, online casinos must implement anti-money laundering processes like KYC; otherwise, they may face fines.
But why does a crypto casino have to provide KYC procedures when such casinos are supposed to give anonymity? Because players want to keep their identity hidden from people who don’t want to know they bet online, such as gambling authorities, hackers, and anyone else who doesn’t need to know about it.
And as it was mentioned above, the KYC process is a way to make sure that money laundering, identity theft, and underage gambling aren’t going to occur. This step helps keep you and your crypto casino safe, so it is essential to maintain the procedure.
Final remarks
Online gaming security is a significant concern, and the rise of cryptocurrency has made it much more so. Both sectors present some safety risks, necessitating the adoption of strict regulations. And KYC is one approach that guarantees safety for gamblers while they play with crypto.