Though I applaud the effort to get age right and protect players, I'm not sure I'll ever be comfortable having me or my child scan our photo ID and selfie to upload it as part of a login flow to an application.
I would much prefer my government to take on responsibility for providing this sort of service as they do e.g. driver qualification. Once upon a time the usual thing to get OK'd to rent a van (e.g. for students who are moving house) is you rock up to the rental place with the legal documents showing you're entitled to drive. You're relying on the fact that the person renting you a van doesn't much care and isn't keep…
Right now, the Verified.Me service sends through your actual non-anonymized identity (Social Security Number, I think) to the service being signed into, meaning it’s only really good for services you’d want to hand information like that to anyway (i.e. government service websites.)
But it’d be only a little tweak to enable a provider like this to send the service being logged into a persisted random-per-service token, or a per-service-salted hash of that info, instead. If this was done, a flow like this would then be perfect for KYC/AML: it would precisely restrict each legal person to only having one account per service, while also not revealing who that legal person is to that service. And the only person in this flow who’d ever see your ID, is the bank clerk you interacted with to open your bank account, years/decades earlier.