Top 2 Reasons Why KYB Gaming is a Must-Have in 2024?
KYB, what we call (Know Your Business) is an integral part of the gaming industry. As the world is becoming highly interconnected and more immersive in the use of smart technologies, the gaming industry is becoming more and more susceptible to illicit activities.
When we talk about gaming, the playful feeling around characters is not the only thing that comes to mind. Rather, a game with the immersive touch of technology, allowing for communication and the feature of worldwide connectivity in gaming rooms is the highlight for 2024.
Having that said, people are finding more and more creative ways to commit gambling and other money-related crimes through the gaps left by KYB gaming.
Is There a Static Figure For Gambling In Gaming?
With the advent of new technology and gaps in monitoring of bad actors across the gaming industry, the digits of gambling and overall leakage of annual GDP to corrupt practices have been significantly increasing. To mention a few, it is declared:
- As mandated by “United Nations Office on Drugs and Crime (UNODC)” a total of 2-5% of GDP is lost due to illicit offenses including money laundering. To add further, a larger portion of it is linked with the gambling sector.
- As identified and declared by “The Financial Action Task Force (FATF)” casinos and online gambling are highly involved in laundering large sums of money, due to unattended gaps in their potential to ensure transparency across the gaming industry.
Having said that, it would not be wrong to assume that the market size of gaming is increasing at a fast pace, mandating the need to develop a complete KYB verification suite of compliance.
This blog will be your walkthrough of why KYB services are crucial for the gaming sector in 2024 and what could be the different strategies to empower KYB checks across the industry.
Top 2 Reasons Why KYB Gaming is a Must-Have in 2024?
KYB (Know Your Business) is based on identifying the businesses you want to onboard and the level of risk that a business is and involves the process of understanding the customer. Also, KYB has the role of making sure that any ultimate beneficial owners are screened and allows for personal financial data to be shared.
The appearance of 980 directorships in Singapore gives rise to the connotations of the restricted number of shareholder groups. Leaderly, businesses processed $7.5 million in payments with this ownership structure.
In terms of private sector actors, companies like Companies House and the Financial Conduct Authority (FCA) may have to monitor companies from different citizens. Furthermore, the companies will have to cross borders to redirect business risks.
Here are the top 2 reasons why KYB Gaming is still relevant in 2024.
- Verification of Gambling Business Credibility
KYB requirements, whatever you are willing to, will propel either a financial institution or venture capitalists who are looking to venture into the gaming industry to ensure safe and secure partnerships.
Through this activity, $ 2.1 billion only is invested by gamers into wagering the betting market. Subsequently, this huge demand calls for to the point of putting aside comprehensive know-your-customer methods in the gaming industry.
Due to the great amounts of investments that would come, one should ponder having an already made, all-round compliant framework in this regard and this encompasses verification of the organization before they are partnered with for business.
The KYB in the gaming segment can help the startups here, so they can ingress quickly and efficiently new users, players, and investors without creating holes or liabilities in the system of security and compliance.
- Prevention of Money Laundering & Related Crimes
Referring to KYB in the gaming arena, gaming outlets, and online platforms must have access to plenty of business associates so they can sieve the ones that cannot guarantee transparency to eliminate any risks of money laundering and corruption issues they may be associated with.
Shell companies will be among those that are targeting gaming platforms from which they will be bleeding loads of money through them. If you need the cleanest way to launder the false currency without being found out to do dirty work.
What Could be Other Essentials in KYB Gaming?
The gap is usually plugged with the low level of data banks in the majority of cases. Undertaking cosmetics background checks involves realizing all the features that can be used to determine the level of risk of the responsible personality.
Lastly, the main purpose of the KYB (know-your-client) process is to adhere to the global regulations and the client’s request for meeting the compliance requirements of all the countries where the banks are located.
To Sum It Up
If you have been maintaining compliance with AML and KYC, KYB may sound almost similar. However, the regulations for KYB vary from industry to industry. Businesses looking to invest in the gaming sector and vice versa face the constant challenge linked with data. It includes both the concerns linked with data privacy and the lack of a complete and structured database that allows for proactive background evaluations.
2022 is going to be all about tech advancement and modern technologies integrated with smart detection algorithms that help detect high-risk investors, players, and businesses before they can interfere with business integrity.
Looking for comprehensive KYB services? Read more about them in a comprehensive guide about emerging trends & challenges in 2024.
