They deal with third-party liquidity providers, as pointed out here;
Thanks, I didn't notice that part.
One day a client's funds will get blocked by one of the liquidity providers they partner with citing suspicious transactions, and they will ask for KYC verification. Xgram.io will then say it's one of the rare moments where they will request for KYC. I think I have seen this kind of thing several times before.
This is usually avoided by creating an intermediary wallet. You send the coins to it, AML verification is performed, and then it's sent to the liquidity providers.