But the thing is holding and using cryptocurrency does not entitle us to any special privileges such as KYC exemption. We are still a citizen of a country and must be obliged to government regulations. If we do not want to provide KYC, we can just avoid the services that require KYC.
you are right and I agree with you that we are a citizen of a country and we have to obey the government regulations. But when we have overcome any banking system and where there is no KYC requirement to send funds from P2P, there should have no restriction for gambling too. Many gambling sites do not require KYC until there happens any problem for a specific user.
The situation with KYC is changing these days and more and more casinos are beginning to ask their customers for KYC verification, but there are still some exceptional situations where players look for none KYC casinos and play on them alone. Just as we have decentralized exchanges that do not require KYC so we also have casinos that are decentralized and will never ask players for document verifications.
Decentralized exchanges are another story, currently, popular crypto casinos ask for KYC but they don't make it clear on promotions. The struggle becomes real when a gambler wins a big amount but can't withdraw, support doesn't release crypto withdrawal without KYC level 2 verification. The situation is not good for those who look for anonymous crypto casinos, the options are very limited, mostly they buy documents to verify accounts instead of trusting casinos to give personal data.