A merchant has suspended my transaction because my payer and address status is unconfirmed ?

[Fids1968]

I have no outstanding  information activities on my paypal account to update so I'm not sure what has gone wrong.

The transaction is pending authorization by the merchant on my account.

The merchant wants me to sent proof of address to them including a copy of my passport, which is not a activity I'm inclined to do.

Can any one explain the issue?

Thanks