Bitwala looking for tax information?

I have been looking for a cheaper bank account and I first setup Revolut, then N26 as the fees seem even cheaper and there 3 ATM withdrawals per month free should I need them, and then I set up Bitwala which I think has unlimited withdrawls - and offer high interest on BTC through the Celcius Network.

Bitwala are now looking for my tax information which they have told me is only for money laundering and counter terrorist use but that if any legislation was brought in regarding tax they would have to abide by it.

Unfortunately I do not have a mass of cryptocurrency so I am not worried right now but would any of you consider it a red flag for the future?

Crypto can be stored on the Celcius Network for the same interest - and the same risks - and they also offer some much higher for many alt coins, if that is your thing.