It'd be nice if OP gave an update as to whether this has been resolved or not.

Coinbase just nuked my account, so he's lucky they're even still letting him be a customer.  Hopefully his funds got unfrozen.  They're definitely not a scam exchange.  In fact I'd say they're one of the most reputable as far as problems like this eventually getting resolved in favor of the customer.  I'd probably still be using them had they not deleted my account, but oh well.  Compare them to places like Yobit and they end up looking like Goldman Sachs (lol).

When I had my Coinbase account I had to provide ID, so that's normal.  Anytime these exchanges let you deal in fiat they have to take these KYC measures, which have only gotten more stringent over the years--and I suspect that's not going to reverse.  And frankly bitcoin needs exchanges like them, since they're a legit place to buy and sell it and thereby pump liquidity into the market.