Well, I could try other phones, but first of all Bitstamp should make their processes functional - and reasonable.
The idea to improve safety by forcing people to use their phone is just stupid - someone actually commiting a fraud could easily circumvent this method.

Yep. I phoned them and they first repeated what was already written and then declared the error to be on my side, I should "delete some files".
That's because I ask here.

You can retry again and again, it does not help.
There seems to be a bug in the software that seeks to take the picture on the phone and send it to their security service (onifodo?), maybe depending on Android / camera / Browser version.
Accepting the passport picture only via smartphone (and not website, upload, email) seems to be some security idea, stupid enough.

No, my account balance is in Euro, not BTC.

Bitstamp has earned a nice amount for fees from my transactions in the past.
Now I am informed to "update the ID" and re-upload a picture of my ID card or passport.
But the bloated process - via PC QR-code over Smartphone, camera and Browser-Upload script - fails with an error message, so the account is blocked.
Are there other users blocked from transactions because of this mixture of faulty software and paranoia on the side of Bitstamp?

You probably mean "if".
How could China & Korea prohibit the use of cryptocurrency - is there no way to access the exchanges via VPN in these countries?
I mean this was the idea of blockchains in the first place - get out of central control.

What was banned in Korea now are the official traders - right?

Still, why not analyze the specific reasons for the crash this time?

The market cap is now higher than before, so based on traditional wisdom, crashes should be happening slower.
Are more people using bots, or limit orders?