I agree that as a society we should absolutely not judge people as being any worse simply because there are naked or sexual pics or vids of them floating around.
In fact I would go further and just ban discrimination on sexuality and/or availability of sexual material of someone. This is specially important when it comes to employment and housing discrimination.
However, laws aren't magic bullets and even it such a law were to be 100% followed, the creation of realistic fake sexual material of someone is definitely a serious violation of privacy and intimacy and thus people who make such materials ought be punished as for the violation of such fundamental rights.
This is to say, punishment of fake nude creators should be irrespective of whether or not they caused emotional distress.
Maybe you can require this long process only for people that aren't in your country.
I don't know where you live, but here in Brazil having to get documents and signatures verified by a notary is super common (and super hated).
For example: I once wanted to unregister a domain I had. The only two ways of doing it were: don't pay the renewal fee OR get a paper form verified by a notary sent over snail mail to the registro.br office.
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Also, you may give your clients the option of verifying their signature at the embassy of the company's country in the client's country. This would skip on that whole Ministry of Foreign Affairs non sense.
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A hacky way of avoiding this "excessive burden" problem is to offer all your users the possibility of linking their public gpg key to their account.
Almost no one would do it, but you gave them the opportunity to do so, thus you cover your ass at least a bit.
I think I have a "legally safe", but slow, solution:
1. The user requests information about them but claims that they lost the password and the email address.
2. The company sends a form (in English) that basically asks for the information on the id (name, date of birth, etc) and the information being requested (ex: password reset).
3. The user prints this form, fills it out and attach a copy of their ID.
4. The user goes to a notary in their country to get the signature and ID verified.
5. The user sends the form to the client's country Ministry of Foreign Affairs to get the notary's signature verified.
6. The user sends the form to the embassy of the company's country to get the Ministry of Foreign Affairs seal/signature verified.
7. The user takes a picture of them holding the form and sends that picture via email or similar to the company.
8. The user sends the form via snail mail to the company.
This process can be shortened if both the company's country and the client's country have ratified the Apostille Convention, formally known as
the Hague Convention Abolishing the Requirement of Legalisation for Foreign Public Documents.
In fact I would go further and just ban discrimination on sexuality and/or availability of sexual material of someone. This is specially important when it comes to employment and housing discrimination.
However, laws aren't magic bullets and even it such a law were to be 100% followed, the creation of realistic fake sexual material of someone is definitely a serious violation of privacy and intimacy and thus people who make such materials ought be punished as for the violation of such fundamental rights.
This is to say, punishment of fake nude creators should be irrespective of whether or not they caused emotional distress.