What Is KYC At Crypto Casinos?
Back in the so-called ‘golden age’ of online gambling, it was possible to play at online casinos without any KYC verifications. This was in the early noughties, when the best crypto casinos were still a twinkle in someone’s eye, and the industry was pretty much unregulated. That didn’t always lead to good things for players, as there was no legal oversight on the actions of operators.
At this point some bad actors figured they could take advantage of the situation, using their gambling accounts for money-laundering and other illegal purposes - also something that bona fide operators were keen on avoiding.
And this is when KYC and AML (anti-money laundering) requirements for gambling were born, starting out at fiat sites and then slowly being also adopted by many crypto casinos, including Bitcoin gambling sites. KYC at crypto casinos works in the same way it does at regular sites, with the operators implementing requirements that ensure they stay compliant with financial and anti-fraud laws.
Nowadays, KYC measures are a legal requirement in Europe, the US and the UK, not only for online casinos, but also for financial institutions. KYC at crypto casinos is typically divided into these four main areas:
- Document verification to ensure that no forgeries are presented.
- Identity verification to ascertain players offer the correct personal details and are not under age. This is also known as a Customer Identification Program (CIP).
- Address verification to make sure players don’t reside in a country that is geo-blocked.
- Risk assessment to verify whether a player falls within a high-risk category, for example if they’re politically exposed. This is also known as Customer Due Diligence (CDD).
Is KYC Verification Safe?
One of the attractions of playing at crypto casinos is the promise of anonymity. No-one likes to have to divulge personal information to a website, especially when this information is related to your address, employment, and financial history.
One of the most common questions I’m asked when it comes to KYC at crypto casinos is whether the information you supply is secure, or whether there’s any chance of it falling in the wrong hands, or it being used for other purposes than was intended.
I’ll put your mind at rest immediately. If you’re playing at one of our recommended crypto casinos, you can go right ahead without any worries, as all Cryptocasinos.com reviewers ascertain that a site is 100% safe and secure before recommending it. This is especially true if you pick a site that has the ‘Cryptocasinos Certified’ seal, because it means that the operator has satisfied an even stricter set of requirements with respect to safety and platform security.
A crypto casino that has obtained a Cryptocasinos.com approval or certification has taken certain steps to ensure that all data collected from players is secure, namely the below:
Encryption. When you enter your personal details, the crypto casino uses encryption to scramble this information. This way, even if someone intercepts the data, they can't read it without the special key to decode it.
Secure connections. Casinos use SSL (Secure Socket Layer) certificates to create a secure channel. You'll notice this by the padlock icon in your browser's address bar. It means the connection is private and protected from eavesdropping.
Firewalls. These monitor and control the incoming and outgoing network traffic based on predetermined security rules. They block unauthorized access and prevent malicious attacks
Regular audits and updates. Legit crypto casinos hire security experts to regularly inspect their systems for vulnerabilities. They also update their software to patch any security holes and improve protection against new threats.
Access controls. Only authorized personnel with a legitimate need can access your KYC data. The casino uses multi-factor authentication (requiring two or more proofs of identity) to ensure only the right people gain access.
Compliance with GDPR regulations. These laws set high standards for data protection. Online casinos must follow these rules, which include secure data storage, clear privacy policies, and immediate reporting of data breaches.
Employee training. Casinos regularly train their staff on the best practices for data security, teaching them to recognize phishing attempts, use strong passwords, and handle data responsibly.
Crypto KYC Requirements
Forbes describes these requirements very simply: “if you don’t trust a new player, don’t onboard them”. But anyone who’s ever registered an account at a crypto casino knows that in practice, things are rarely that simple. How do you know if you can trust a new player?
This is exactly why KYC cryptocurrency verification requirements are laid down very clearly in operators’ terms and conditions, to avoid any surprises or complaints from players. KYC at crypto casinos mostly involves new players submitting to a series of identity checks before they can make a first deposit and put down a real money wager. These include providing personal information such as address and age.
Players will also be asked to provide proof of this information, usually by means of government-issued identification documents such as ID cards or passports, or even utility bills.
Source of wealth is the other major cryptocurrency AML requirement. This involves proving that the funds you’re using to gamble have been obtained legitimately, either by providing bank statements, copies of payslips, or employment contracts. You may also be asked for a selfie or another photo to confirm that you are who you claim to be. You will be asked to provide these before making your first withdrawal, so you have some time between registration and compliance.
What happens after you provide all this info? The crypto casino’s compliance team springs into action and confirms that all data is correct, using a variety of technological tools. As soon as the data is validated you’ll be able to start playing or withdraw your crypto winnings. This process typically takes a few days and can delay cashouts, which is why some players feel that Bitcoin identity verification goes against the very ethos of crypto gambling.
It’s worth noting that KYC at crypto casinos is not a one-time thing. Operators have on-going measures in place to ensure that there’s no fraudulent activity or identity theft going on, especially in the case of dormant accounts that suddenly become active. Thus, don’t be too surprised if you’ve already satisfied all KYC blockchain checks but you’re asked to resubmit your proof of data at some point down the line, especially if it’s been a long time since your last withdrawal or if you’re requesting a larger cashout than usual.
Does Metamask Require KYC?
Metamask is one of the most popular cryptocurrency exchanges among players, so much so that some cryptocasinos like Bitcasino even allow new players to register for the first time by connecting directly via the crypto wallet.
The advantages to this are many. You don’t need to create an entirely new account and remember a new password, you don’t need to share any personal details with the casino and you’re pretty much done in under a minute.
You can also go straight to using your cryptos from your crypto wallet, without needing to use any third party exchanges to transfer your funds to the casino, or else use fiat currencies to buy crypto from the platform.
Now, does Metamask require KYC?
No, when you’re creating your wallet you won’t be asked for any personal information - you simply need to create a password and generate your seed phrase. This is because Metamask is fully decentralized and non-custodial, giving users full control of their private keys and cryptos. In other words, Metamask is not managing your funds.
This is brilliant if you’re also playing at decentralized casinos which follow the same principles of anonymity and allow you to register via Metamask. At no point will you be asked to divulge personal data - neither when you’re setting up your Metamask account, nor when you’re connecting your crypto casino account to it.
However, if you’re using a casino that does require KYC processes, this doesn’t apply. Even if you’re allowed to register using Metamask, at some point you’ll be asked to provide some identity authentication.
Is Playing At No-KYC Casinos Safe?
Clearly, KYC processes at crypto casinos exist for a reason, so you may rightfully be wondering whether it’s safe to play at gambling sites that don’t enforce this step. My advice is to always to use extreme caution.
On Cryptocasinos.com you’ll find a number of casinos that implement a No-KYC policy for cryptocurrencies. JustBit is one such example, and you’ll see the No-KYC sign as soon as you land on the homepage. Yet, it has still earned a Cryptocasinos.com recommendation - this is because the reviewer would have tested the site thoroughly and found that it implements a very high standard of player and data protection.
Betplay.io also follows a No-KYC policy, requesting only an email address and a password for your registration process, with no proof of identity required even for cashouts. Because of this, it is able to offer instant withdrawals and can also exchange your fiat currencies for crypto in seconds. However, the site backs up this decision with sturdy security on its platform and it has gained the seal of approval both from Cryptocasinos.com and from other industry leaders.
However, not all No-KYC crypto casinos follow this level of care. This is why if you’re considering such a site and you don’t find it recommended here, you should do your homework rigorously so as to avoid playing at rigged casinos or other dodgy sites.
This is best done if you have a good measure of experience as a player and in the world of cryptocurrencies. With so many potential pitfalls, unless you have the requisite knowledge you may end up regretting the choice of an easier registration and cashing out.
If you’re relatively new to the scene, or you feel more comfortable leaving it to the experts, take a look at the crypto casino options offered on this site. This way, you avoid having to do any detective work and can go straight to playing your favorite crypto games.