After I had submitted my withdrawal request, I was informed earlier today that they want further KYC information from me.
I have provided them with my driving license and a bank statement to verify my identity.
This is really bad news for a gambler. Since your account got suspended even after you followed their instructions, there must be a reason. Betcoin.AG has already replied here and explained the reason for your account's current status. Now continue the conversation with them, and try to withdraw your funds. And if they have wrongfully withheld your funds without any reason, then definitely add all the proofs against them and post them in this thread.