AML/KYC regulations are insanely draconian.

Try to interact with any kind of business in the financial sector that is even slightly "innovative", and soon you will run into exactly the same barriers. This problem is not isolated to Bitstamp or even just Bitcoin businesses.

Last year I tried to invest a paltry 300 GBP into a biotech startup via a crowdfunding initiative. My investment was blocked by the crowdfunding company because of "not passing AML/KYC checks"  Not delayed or hindered by identity checks, but outright prohibited.  The reason given was that I am suspicious because am a resident of The Netherlands and have the audacity to invest in the UK!   These are two highly developed EU countries; surely the ability to invest across them is something you would take for granted?  A that point, I felt more like I was living in Venezuela than the EU.

Similar experience with Transferwise. Tried to send a relatively small amount from UK to Eurozone. Again, my transaction was frozen with no advance warning and they refused  to release my money it unless I send them sensitive info like passport scans etc. Again they cited AML/KYC compliance.  Funnily enough, when transferring a much larger amount directly from UK bank to Eurozone bank (and paying a ripoff exchange rate) no questions were asked.  

Based on these experiences and others, I am actually surprised that Bitstamp isn't being more restrictive with its customers than they are being right now.

As for btc-e, I find it incredible that they have managed to get away without doing AML/KYC checks in this kind of regulatory climate.   The only way that I can explain it is that there is something shady going on there.