So, here's the interesting question. If I memorize the 12 word or 24 word seed... and I travel, am I then subject to this law? I mean effectively most wallets whether hardware, mobile, desktop, or web, all which you can travel with, only hold value due to the seed for the private key. So I guess my brain can be considered illegal if I do not claim it.
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Came here to say this, but it looks like you beat me to it.
Haha you're right!