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.
A casino rejecting a gamblers kyc verification document he or she submitted is not a proof in it's entirety that the casino is shady, atleast, we all here have seen multiple cases where some reputable casinos rejects the document a user submitted for kyc verification, on the ground that the document is not exactly what the casino requested or requires for the verification of the level which the gambler is applying for ..
I can draw an example from Stake whenever they ask a customer to go through a level 4 verification for what ever reason, poof of funds is one of the documents required for verification approval for this level, and many a times, Stake end up rejecting documents a user submitted for the level 4 verification because they often submit what is totally different from what Stake is requesting for, does this mean that Stake is shady? , of course not.