The biggest problem has always been the verification of the KYC, what you are talking about is good to apply, pass the KYC by the time the exchange is activated because everything related to verification is already ready so that you do not have any problem So when this is done there should no longer be a problem, the same thing I think should be done with the casinos, before depositing the KYC process should be completed because it is annoying if you play, win and then they put in a lot of hurdles to pass the KYC , this is something that I do not recommend that anyone let it pass because at the moment of withdrawing no one likes to wait, sometimes a player may feel that the player does not want to grant him the withdrawal.
This is the advantage of completing the kyc requirement before playing. You don't have to worry even you win huge because you're already verified. There are really cases wherein a certain casino is holding a gambler's winnings or not accepting the documents for some reason. Well, it only happened if the site where you're playing is shady. In addition, it's a must for all gamblers to read the ToS of the casino so we're aware of their rules and can prevent ourselves violating any of it.
Casinos should follow what KYC compliant exchange so that they will not be questioned about why they had been ask for KYC. They should put thay notice or send some notification on email so that there's no confusion for other who usually don't read the TOS or no question will be asked if they tell to their costumer to send this details to them for verification or other purposes.