Crypto gambling and KYC: How not to jeopardize your gaming license
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KYC applies to crypto payments and online gambling. Expert on igaming industry explains how it works. He explains the importance of being compliant.
Cryptocurrency is increasingly being used as a form of payment on online gambling and casino sites. A growing number of operators are integrating crypto payment processing into their platforms.
Gambling operators are required to conduct due diligence and to ensure compliance with AML/CFT and anti-financial crime provisions. However, they can't get away with not conducting checks on customers using their platforms and paying in cryptocurrency.
KYC rules apply to transactions using virtual currency. At the client onboarding stage, steps must be taken to ascertain the identity of the player. Even if someone is paying via an anonymous method such as crypto, their identity must also be verified beforehand.
Operators must monitor the way balances are maintained and used. KYC and DD processes should be carried out on every withdrawal. Large deposits, regular deposits and multiple small-to-medium deposits in a short period should also be flagged.
Some operators are unaware that KYC processes apply to crypto transactions. Failure to meet KYCs can result in significant fines, potential legal action and reputational damage. Regulators are looking to crack down on both crypto and financial crime.
Best practices for online gambling players using crypto include disabling the ability of players to transfer funds from their account to another player and requiring players use the same wallet for deposits and withdrawals.
Disabling the ability of players to transfer funds from their account to another player is a good idea.
Cryptocurrency payments and online gambling are compatible, but operators must be compliant. Non-compliance damages the credibility of the industry and can lead to underage gaming. Fast Offshore has worked in the gambling industry for over 23 years. It can help you create KYC and DD policies that align with this ever-changing sector.
