Is crypto legal in Iceland?
Cryptocurrency is legal in Iceland, but subject to regulatory restrictions.
Northern Europe · IS · 6 of 9 dimensions sourced
Iceland crypto policy at a glance
Stage of the central bank digital currency programme — research, pilot, or launched.
Whether crypto is legal, restricted, or banned for individuals and businesses.
“The Central Bank does not consider virtual currencies to be legal tender in Iceland, as they are not issued by a central bank or other competent authority and are not considered a claim on such parties. Trading in virtual currencies is not prohibited but is subject to general restrictions in Act No. 87/1992 on Foreign Exchange, as amended.”
Whether the jurisdiction licenses crypto/VASP service providers.
Rules governing stablecoin and e-money-token issuance.
“There is little or no control over crypto-assets until markets in crypto-assets legislation has been enacted.… There are plans to implement the EU Markets in Crypto-Assets Regulation in Iceland.”
How crypto gains are taxed and reported, including OECD CARF participation.
“Við sölu á rafeyri og rafmyntum tilheyra söluhagnaður og -tap fjármagnstekjum... Tekjur af slíkri starfsemi, þ.m.t. námuvinnslu eða gjörningi, teljast til skattskyldra tekna samkvæmt lögum um tekjuskatt.”
How decentralized finance (DeFi) is treated by regulators.
“So-called decentralised finance, where financial services are provided based on smart contracts on a blockchain, is subject to existing financial market law if the service provided is comparable to traditional financial services already covered by law.”
Whether NFTs are addressed in regulation.
Policy toward crypto mining — permitted, restricted, or banned.
Intensity of regulatory enforcement actions against crypto firms.
“The Central Bank supervises to ensure that the activities of crypto-asset service providers... comply with Act no. 140/2018 on Measures against Money Laundering and Terrorist Financing.”
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