Firstly, I hate KYC, especially if it is required by the casino. Secondly, why can't the IP address be different from the country of residence? A lot of people travel to other countries, and also live in other countries for years. In this case, the IP address will most likely be different from the country indicated in your KYC documents.
I start from something, from a basic principle, if the person uses a VPN, but gives his KYC he can play and should play normally in the casino, I do not see that it is an unforgivable infraction to use it, the fact of destroying privacy and that the casino allows us to be traceable is something that no one should allow, well in my case I am not a whale player, but if I were a whale player and the casino does not allow me to use VPN, then easy, I go to another casino that does accept it, as long as there are too many casinos in the industry, and if they do not accept me in any, then I would risk a little with decentralized casinos to see how it would go.
KYC with VPN how is that a possibility, because from you ip your documents won't be acceptable from that very point and if you want to use VPN why then should you think of doing KYC, so the case is vis visal we shouldn't be so much concerned about KYC and VPN and if you want to use VPN, the only justifeble reason for using a VPN is because you move from your original location to another location where the gambling site that you already have account on is prohibited and need to use VPN to bypass that restrictions, this way you have every reason to temporarily use VPN.
But in the event that you created a new cryptocurrency casino account using VPN, that will really results into problems for the gambler at the end of the day when the casino will demand for KYC from such a player, many times those that use VPN don't know all of this, but the casino already have their well planned strategy to combat such an attempt, major reasons why casino prohibits VPN usage is to avoid multiple accounts that aim at claiming bonuses or trying to abuse the casino since they may be previously ban players on the casinos.
Some casinos doesn't mind the use of VPN on the site, and such casinos have tons of alt accounts and bonuse abuse and the bad aspects of using such a casino is that their can get bankrupt at anytime since their are open to exploitations from abusers so it is better to gamble on a casino with VPN restriction that gambling on those free to air cryptocurrency casino that doesn't restrict VPN usage.