I have nothing to hide and I do not want to be betting against others that are playing with money that may not have paid taxes and may have been illegally obtained. It is not fair, because they can afford to loose much more than me and still be well-off.
Correct me if I'm wrong but even if others play games with stolen money, there is no direct harm to you or anyone. Isn't the real "loser" in this case the casino itself if those users can win big and then never bet again (or complicate them with money laundering issues)? Why do you want them to play with you on "equal ground"? To borrow from a gaming term, this is not a PVP gacha game where more money equals more wins by beating other players (except for getting bonuses when they make profits).
Also, I don't think the "I have nothing to hide so here's my ID" is really a good stance in this case. There are tons of sites that use those data for malicious purposes. I definitely would not prefer a site over another just because they offer KYC verification if the team itself is not clear. This might sound like a contradiction, but it is really hard to "trust" new businesses if they don't show anything that can be traced back to them if things go south. In this case, I'd rather wait and see or use them carefully with less money and always withdraw my money when I finished my business. Which is why I think a trustless platform would be great to have.
I consider China one of the strongest countries in the world and that they should also be developed in every way, and this should include freedoms for people to be able to have fun as they want, as long as they don't hurt anyone, I think it should be a right, right?
That sounds capitalistic. I doubt China loves something like that (the ideology itself, not the economic system). There is so many news on the crackdown on gambling platforms so it makes sense that those players will use overseas platforms if they want to gamble. I don't think this is surprising anyway, people would try to break the law if opportunity arise when they consider it is worth the risk.