I received a similar message in January. I had been using this exchange since about June last year and had transferred thousands in several different transactions without any problems after verifying with my local government issued ID. Last time I tried to withdraw some funds, however, they told me that the ID I had verified with was not sufficient, similar to the message you had received. They told me I needed a passport and asked me to answer several questions on why I was using the exchange, the source of my BTC etc. I answered their questions but informed them I did not have a passport at which point they told me to submit a driving license and ID that had been notarized, a lengthy and fairly expensive process. Luckily the funds in my account were not frozen so I promptly withdrew the BTC and USD when there was an arbitrage chance. After my account was emptied, I was going to tell them to cancel the withdraw, however before that I checked my bank account and found that the funds had in fact been withdrawn, albeit 2 months late. I logged back in to check if I had received any messages but I had not.
I know that this is probably not helpful, but I thought it would be useful to share a similar experience.
Hopefully all you will have to do is resubmit your ID and not get it notarized which would probably take about a week.