Is Crypto Legal in Iceland?

Cryptocurrency is legal in Iceland for trading and investment purposes, though the regulatory framework remains limited. The Central Bank of Iceland supervises crypto-asset service providers solely to ensure compliance with Act No. 140/2018 on Measures against Money Laundering and Terrorist Financing. Crypto-asset service providers must register with the Central Bank and include entities that convert crypto-assets into currency or electronic money, hold or transfer crypto-assets on behalf of others, or provide digital wallet services (1).

On February 20, 2025, the EEA Joint Committee adopted decisions incorporating the European Union's Markets in Crypto-Assets Regulation into the EEA Agreement by written procedure. This decision will enter into force in EEA EFTA States including Iceland once all constitutional requirements have been lifted. The adoption of MiCA represents a significant development for Iceland's cryptocurrency regulatory framework, establishing comprehensive rules for crypto-asset service providers and issuers across the European Economic Area (2).

"The EEA Joint Committee adopted three decisions by written procedure in the field of financial services, including a decision incorporating Regulation on markets in crypto-assets."

Currently, there is no supervision of consumer protection for crypto-asset trading in Iceland, and crypto-assets are not issued or managed by public entities such as the central bank. The Central Bank warns that trading crypto-assets can be very risky with potential total investment loss, rapid price fluctuations, and vulnerability to fraud or computer hacks. Iceland has become a hub for cryptocurrency mining operations due to abundant renewable geothermal energy, though government attention has shifted toward managing energy consumption and environmental impacts associated with mining activities (1).

Source:
https://cb.is/financial-supervision/other-undertakings/crypto-asset-service-providers/
https://www.efta.int/media-resources/news/eea-joint-committee-adopts-three-decisions-financial-services

Last updated: 18-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.