Online gaming rules: Companies express concern over compliance burden, KYC requirement

Online gaming intermediaries and legal consulting firms on Tuesday expressed concerns over increase in the compliance burden and stringent know-your-customer (KYC) norms with the implementation of the new rules, which are being framed by the ministry of electronics and IT, for online gaming.

As part of the consultation process with the government on Tuesday, some industry stakeholders said mandatory requirements for companies to appoint a compliance officer, nodal officer and grievance officer will unnecessarily increase cost burden on online gaming companies, especially startups. Besides, mandatory requirement to follow the Reserve Bank of India (RBI) directions for identification and verification of a customer at the commencement of user account, will in a way make it difficult to onboard the users on the gaming platforms.