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Why is Paypal demanding personal information including a Passport photo

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Why is Paypal demanding personal information including a Passport photo

I haven't used this account for some time.   Just sold something on an auction site, and shipped it.  Went to collect the money, and Paypal has apparently attempted to turn into the US Government.  They want the sale document, PHOTO ID (which will no doubt be stored on their "highly secure" servers), and even details about the transaction itself.  HEY PAYPAL-  STEP OFF.  NOT.  YOUR.  BUSINESS.  

 

No doubt they'll respond by saying that they're "protecting the community."  I'll respond by saying "close my account."