what kind of bullshit is this? where is this from?

To the best of my knowledge, there is no legislation in the UK explicitly prohibiting citizens from utilizing strong cryptography or managing their own keys, such as OpenPGP keys, cryptocurrency wallets, or other advanced methods of self-managing PKI. In fact, the UK GDPR and other data protection regulations emphasize the importance of data security, including encryption. Citizens are encouraged to use encryption to safeguard their personal information. As far as I understand, regarding financial aspects, the Financial Conduct Authority steps in only at the time of cashing out, but they are probably much more occupied with traditional fiat money laundering perpetrated by mainstream banking systems.

What exchange is this ?

What else to expect from the country that imposes TV tax even if you don't have one.