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Why regulators are increasing KYC requirements
Why regulators are tightening KYC: Key drivers
1. Rise of financial crime and multiaccounting. Fraudsters use stolen cards, "split" transactions and cash out bonuses.
2. Sanctions and geopolitics. Enhanced control of jurisdictions, PEP statuses, and crossings with restrictive lists.
3. Cryptocurrencies and mixed payment rails. We need better tracing of the source of funds and online risks.
4. Remote onboarding economy. Mass online registrations require verification of "liveliness" and the fight against deepfakes/synthetic personalities.
5. Protecting vulnerable groups. Focus on age, self-control and prevention of gambling addiction.
6. International harmonization. Standards pressure (risk-based approach, continuous monitoring, data retention).
7. Cyber risks and ATO (Account Takeover). Strong re-verification procedures are required for device/IP changes.
What exactly is changing at KYC right now
More "live" checks: selfie video, liveness check, comparison of biometrics with a document.
Stricter to documents: the statute of limitations for the address is ≤90 days, the ban on cropped scans, the requirement of original PDF/photos.
Verification of the payment method: confirmation of ownership of the card/account/wallet by the same person who owns the account.
Risk EDD: Request source of funds/revenue for high turnover, VIP and atypical patterns.
Continuous KYC (ongoing): repeated checks when changing profile, geography, devices, limits.
Tougher to geolocation: reconciliation of the country of the document, IP, GPS/device and payment infrastructure.
Device-/IP intelligence: VPN/proxy/emulator flags, pruning "farms" of devices.
Reduction of "gray areas": uniform requirements for offshore and local partner operators (payments, providers).
How it affects players
Pros:- Safe and secure payments, fewer scammers and disputes.
- Clear rules, transparent requests for documents.
- More steps in verification, sometimes waiting with EDD.
- Partial locks until the required confirmations are provided.
1. fill out the profile strictly as in the documents; 2) prepare a set: ID + address (≤90 days) + payment in your name;
2. take a photo in good lighting, without glare; 4) avoid VPN when checking selfies;
3. for large amounts, keep statements/contracts in advance as proof of source of funds.
How it affects operators
Processes and technologies. We need RegTech solutions: OCR, biometrics, case management, graph and anomalies, online screening.
Team and training. Compliance, payments, VIP management must recognize "red flags."
Document management and storage. Strict retention, encryption, role access, audit trails.
Cost of compliance. Costs are growing, but penalties and reputational risks are decreasing.
UX and conversion. Balancing the "rigidity of verification" and the convenience of onboarding becomes product task No. 1.
Regional accents (in general terms)
Europe/UK. Strengthening the "affordability" of the game, the source of funds and the protection of the vulnerable.
North America. Segmented requirements by state/province, strict reporting and control of suppliers.
Asia-Pacific. Combination of local rules with increased attention to cross-border payments and crypto risks.
LatAm/Caribbean. Rapid progress in regulation, unification of KYC to combat fraud and gray import of payments.
Frequent 'red flags' that have KYC tightening
Non-compliance of geolocation with documents and payment data.
Bursts of deposits/outputs without game logic.
Dozens of accounts with shared devices/IP/cards.
Freshly created crypto wallets, inputs from mixers/bridges.
Inconsistency of the declared real activity profile.
Mini-FAQ
KYC and AML are the same thing?
No, it isn't. KYC - customer identification and basic checks; AML - monitoring its financial behavior throughout the life cycle.
Why are they now asking for video selfies?
To cut off deepfakes/masks, confirm "liveliness" and compare the face with the document.
Why confirm the source of funds if I have already passed KYC?
This is EDD for high turnovers/risks: regulators require to understand the economic meaning of transactions.
Is it possible to hide data on a photo card?
Yes: usually - show the first 6 and last 4 digits, name; CVV is always closed.
Why do they block output until verification is complete?
So the rules prescribe: until the risk is reduced, the operator is obliged to withhold funds.
Regulators are strengthening KYC because the risk landscape is changing: more online fraud, sanctions and crypto risks, and player protection requirements. For the industry, this means deeper and continuous verification, for players - a little more steps, but also more security. Prepare the correct documents, confirm payment methods in your name and be ready to explain large operations - then KYC will pass quickly and without surprises.