Hetzner is very cautious who they accept as a customer these days as the downside of being a low-cost hosting provider is you get a ton of signups from people looking to use it for seed boxes and other illegal activities.
It sucks for legitimate customers, but you can sometimes plead your case directly as long as you are willing to provide id and such, but ultimately like you say, it's their business.
I get it's their business and they can do as they please with it, however, maybe tell me before I create an account that you don't accept accounts from my continent