Maybe it is to find out the background of users who use big money to play gambling, including their job and where they live. If this is later reported to the local government, the local government can monitor them, especially if they win a lot of money. And if they often win big money, the local government will know and maybe eventually, it will have something to do with the taxes they must pay. We really don't know why the government asked many sites to implement KYC on their users, especially crypto users and we can only guess.
But I feel that with the development of crypto in many countries, which will also make a lot of people who are getting rich from crypto, the government should know who these people are. Moreover, the government is also getting tighter against these crypto users.
This is precisely where the almost insoluble contradiction lies between the very idea of cryptocurrency, which was laid down by the creator of bitcoin and, by the way, the still anonymous Satoshi Nakamoto, and which consists in the complete anonymity of the owner of the cryptocurrency and payments in cryptocurrencies.
On the other hand, the world is increasingly moving away from payments in cash that can also be partly anonymous (for example, through intermediaries or through a cell in a left-luggage office). But in cash, the level of anonymity is of course much lower than that of cryptocurrencies.
I don’t even think about bank cards and transfers, where there is generally “0” anonymity.
But for calculations, anonymity is often needed by people for various reasons. So Satoshi came up with an ingenious invention.
And now the banking lobby all over the world is trying their best to stop the anonymity of payments and all people would be under the control of government agencies, tax, fiscal, security agencies and so on.
This is, in a sense, a modern version of enslavement, even slavery, of the entire population of the country by some kind of local establishment that imagines itself to be Gods on Earth.
And on a global scale - the American establishment.
All of them are parasites and reptiles on the body of our beautiful Planet.