the fact that they want me to take a pic of my ID with my phone and sending it (I ALWAYS add a watermark in my ID with the words 'for use of XYZ only' to prevent identity theft)
Nothing you said prevents you from submitting your ID watermaked.
That being said, you are free to reconsider, but I believe account termination is something not prevalent enough for it to be considered as a factor for reconsidering a signup.
Given that I came to post here... Anyone doing bank transfers as of lately on Wirex? Wonder if the issues I've had are still "common"