This is an incoherent position in your local legislation. If cross-sex ideation is not a mental illness, then from where does the authority of your mental health profession to pronounce on this subject derive?

It is precisely because delusion is within the specialism of mental illness that the psychiatric profession was given the domain of transgenderism in the first place.

I'm sure you'll find that while some professionals will argue that it is completely sane to insist that someone really was born into a body that does not belong to them, they will nevertheless accept mental health funding to intervene in the lives of these patients.

As for making the denial of the materiality of gender identity some kind of 'hate crime', your country has been manipulated into accepting a blasphemy law.