> This does mean that the UK is now on the list, along with the US, of places where no credible crypto startup is possible, though.

I can think of very few developed countries that, when the rubber hits the road, will let you do what you want. Taking measures to aid official police or court investigations is simply an implied obligation in most countries with developed legal systems. Very few countries will tolerate service providers whose raison d'etre is "we won't cooperate with the authorities" except in limited situations like off-shore banking when the primary purpose is to hide assets or information from people in other countries.

This isn't specific to crypto or police investigations either. Say you want to start an accounting firm that guarantees it will never share your records if subpoenaed in a civil lawsuit. This would never fly in the U.S., not now or one hundred years ago, and while I'm not super familiar with European law, I can't imagine it would fly in any western European country either.