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Know Your Customer (KYC) Explained

Undoubtedly, one of the primary reasons online gambling has reached the popularity level it enjoys today is the convenience it provides to players. The ability for anyone to test their luck from anywhere at any time is an allure few can resist. However, one thing everyone hates about interactive gaming is KYC, or Know Your Customer guidelines.

These measures aim to prevent online businesses from getting used for money laundering and other financial crimes. Stringent regulatory environments set these procedures as mandatory, hoping to minimize incidents of fraud and create a safer trading landscape for all. While that is more or less accurate, KYC gambling is still the bane of most internet slot and table game enthusiasts. And it is obligatory even at some sites that claim to deliver an anonymous gaming experience.

Below is a short guide regarding the KYC process and how every gambling site claiming to be a crypto casino without KYC may still require some form of account verification.

KYC Definition

Know Your Customer is a set of standards companies that accept payments use to verify that their customers are who they say they are. The practice and criteria used are adopted from the financial services industry. In particular, from the investment sector, where brokers must know a reasonable amount of information regarding their clients (and their accounts) before handling their portfolios.

Although the cryptocurrency market has no obligation to employ these standards, many interactive gaming regulators ask their licensees to perform identity checks on their users when players sign-up or request their first withdrawal. No KYC crypto casinos do exist, but they are rare.

kyc explained

Why is KYC Verification Required?

In 2014, FinCEN, or the US’s Financial Crimes Enforcement Network, proposed that KYC requirements become a part of a broader regulation scheme in the US, an attempt for authorities to increase their focus on modernizing the fight against terrorism financing and money laundering.

KYC rule became an ethical requirement for companies operating in the investment industry. Knowing vital facts about a customer is a crucial step in effectively keeping and handling their funds. Hence, investment advisors were responsible for establishing individual customer profiles that detailed how they used their funds as a means to:

  • Prevent fraud.
  • Stop money laundering.
  • Avoiding funnels for nefarious activities.
  • To perform risk management assessments.

Once the online gambling sector adopted this customer identification system, they tweaked it to help the sphere with self-exclusion tracking and ensure that players gamble with funds belonging only to themselves.

Today, many financial institutions demand that their customers deliver due diligence information, and those who refuse will not get serviced. As a result, many players now seek no KYC BTC casinos as an alternative to traditional online gambling sites.

What Documents Do Casinos Require for KYC?

More or less, the online casino industry has standardized the KYC process. In most cases, a gaming platform will finish its identity verification steps within forty-eight hours after you provide the necessary documents. The mandatory paperwork presenting deadline is often two weeks from the day this process gets initiated. If you do not comply within this timeframe and upload the required documents, your account will get closed. The ones you will most likely get asked to submit are:

Photo ID

A photo ID could be a copy of your citizen’s ID, your passport, or your driver’s license. Any government-issued document that has a photograph clearly showing your face.

Proof of Address

Usually, the most commonly asked proof of address is a utility bill, such as an electricity or water one. It has to display your name and address.

Proof of Funds

99% of the time, a bank statement will suffice. For e-wallets, you will normally be asked for proof of account ownership. With cryptos, you may be asked to show evidence of activity at a leading online exchange. Alternatively, if you purchased cryptos from an online casino through a third-party purchasing system, these sites might ask for proof of funds before allowing you to acquire any digital currencies.

Do Crypto Casinos Require KYC?

While there are many no KYC Bitcoin casinos out there, the reality is that most gambling sites accepting cryptocurrencies with a valid license from a credible regulator will ask that you go through this process. On we list only casinos that we believe have an acceptable level of KYC. 

Though adhering to KYC standards may not be one of many licensing criteria monitoring bodies mandate, most gambling companies still willingly follow them to avoid potential legal hassles. They also implement them believing that they are a sign of reliability and security from a regional compliance and player safety standpoint.

Pros and Cons of KYC vs. No KYC Crypto Casinos

The reasons why KYC at an online casino is a positive thing include:

  • It is often a sign of reliability and regulatory compliance.
  • You can freely withdraw/deposit using the same payment method once you’ve completed this process, knowing that you have followed applicable laws and rules.
  • International financial crime prevention.
  • Extra gambling addiction protection.

The negative aspects of KYC procedures at gambling sites are:

  • Withdrawals delays.
  • Repeating this process, potentially, whenever you opt to use a new deposit/withdrawal option.

The benefits of using a no KYC crypto casino are:

  • Total anonymity.
  • No geo-restrictions.
  • No withdrawal delay periods.
  • Freedom to utilize multiple cryptos at a whim.

The cons of using a crypto casino that does not follow the KYC standards are:

  • These sites can get abused by problem gamblers, as such individuals can use them to keep betting even with a universal self-exclusion ban activated.
  • No KYC may be an untrustworthy operator red flag.

To Sum Up

KYC exists to protect all parties involved in financial transactions. In a gambling context, these standards are not appealing to online gamblers because they reveal their identity to operators and government institutions, who can monitor their gaming activities. Hence, many internet gaming enthusiasts prefer tracking down and using a quality no KYC crypto casino instead of playing at one where they must reveal who they are.

What choice you eventually make is entirely up to you, as both platform categories have pros and cons. When you do choose to set off and test your luck on casino-style products over the internet, remember to gamble responsibly and research every site that tickles your fancy before making a deposit.

FAQ - Know Your Customer

Often, you will get asked to submit a copy of a photo ID and a utility bill that acts as proof of address. In rare instances, a gambling site may also demand that you submit proof of funds.
Some are, but most require that gamblers complete this process upon sign-up or before their first withdrawal.
To help government institutions combat the financing of terrorism activities, fraud, and other international financial crimes.
Likely, your chosen crypto gaming operator will verify your identity in less than forty-eight hours after the moment you submit the necessary documents. The deadline for this process to get completed is usually two weeks.
Yes, as mentioned, you can easily find a no KYC gambling site online, as dozens of such sites live on the Web, operating for years with stellar reputations.

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Play calmly and responsibly. Make sure you stay in control of your gambling. Never try to chase losses. At the slightest hint of problem gambling or dependency contact the helpline.