Actually, it is the issue at hand.

You could accuse them of enforcing unfair terms and conditions (at least under EU regulations), as just because something is written in the ToS doesn't mean that is a valid request and that they can act on it at their discretion, but in this case, they are covered. Any change in the operating mode, requirements to be met by clients, and many other things in a financial institution that is made to comply with any monetary regulation or international agreements where this one operates can be made without a prior announcement.
The writing was on the wall for all those no KYC exchanges for a long time, I'm more surprised they lasted this long.

Anyhow, there is absolutely nothing you're going to be able to do in this case, either forfeit your coins or go through verification, any of your requests will just hit a brick wall from now and you're going to get just automated responses.