You can safely run a porn site from the UK. Mr David Sullivan one of the UK's most high profile newspaper owners runs a huge porn site advertised every day in the newspaper. The guy who got sent to jail was selling beastiality with a UK based merchant account to take the money. They made an example of him and sent to jail but let out 2 months later. I would not recommend you sell beastiality but anything you find in a top shelf magazine can safely be distributed on the internet. UK Merchant accounts suck anyway. They dont have there acts together like CCBill etc.
Good Luck!
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