Carlton Banks: Again, a technicality. The private keys are generated from your password, the law don't care if private keys are unencrypted, the password is key to protected information and that is where the law applies.
They private key is the encrypted information they want, you have the key, give it up or go to jail. Even if the law won't allow this atm, it's a small technical change and it's all the same.
Wouldn't they have to prove that you still have access to the keys? And wouldn't it be fairly easy to devise new techniques to keep anyone from finding out exactly how many coins you have? Plus you could do some really crazy things with multi-sig. Like lock your coins from being spent for a time, or even set it up so that even if they get your password, they can't do anything with your coins without catching or finding someone else.
You're guilty until you can prove otherwise. How can you prove without shadow of doubt that you don't have the keys in your brain?
http://decryptedmatrix.com/live/encryption-becomes-illegal-in-the-uk-jail-time-for-failure-to-provide-keys/The multi-sig concept is great, but if I understand this law correctly it won't matter. If they believe you got the full key you will have to disprove them. Ofc you can't do that.