I do not think the first option is the problem because the documents that you will be asked to provide to verify your account is proof of identity. "ID + username & Date"
Option 2 reference but most often the third option is the cause of the problem where you must provide more documents to ensure that you do not offer launder money service.
Remember that there are a lot of recent regulation rules so requesting this type of documentation is not surprising.
Now that you say this, I think that it was probably this clause that triggered the suspension of OP's account:
If we believe the details are not correct, current, or complete, we have the right to refuse you access to the site, or any of its resources, and to terminate or suspend your account.
I don't know if it's done because of the fact that OP used his wife's bank account to purchase bitcoin, and the seller reported him. But it's very unlikely that it's the 3rd possibility, as clearly it states in the email that he violated some terms of service, and it's not just some routine identity check.
Thank you, my friends, for your replies.
I just received a notification fro LBC that my account got activated
Great! LBC is usually easy to deal with compared to other exchanges, as proven here. Did they state any reasons?