---
type: country
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "europe", "fatf", "legal"]
aliases: ["IS", "ISL", "Ísland"]
created: 2026-04-13
updated: 2025-12-01
compile_into: ["[[country--iceland]]"]
sources:
  - name: "FME / Central Bank of Iceland"
    url: "https://www.sedlabanki.is"
    type: "official"
---

# 🇮🇸 [[country--iceland|Iceland]] (IS) — Crypto Regulation

> Iceland has a clear legal framework for cryptocurrency, aligned with European regulations such as the Markets in Crypto-Assets Regulation ([[concept--mica|MiCA]]). The Central Bank of Iceland oversees financial supervision including AML and market conduct.

## Overview

| Field | Value |
|-------|-------|
| Status | Legal |
| Risk Score | 30/100 (Moderate Risk) |
| Enforcement Level | Low |
| Region | [[domain--europe|europe]] |
| Currency | [[entity--isk|ISK]] |
| Adoption Rank | #44 |

## Tax

| Type | Rate |
|------|------|
| VAT on Crypto | No |

## Licensing

| Field | Value |
|-------|-------|
| Required | Yes |
| Regulator | [[entity--fme|FME]] |
| Framework | Markets in Crypto-Assets Regulation (MiCA) |
| Ease | medium |
| Cost | $20,000 - $100,000 |
| Timeline | 4-10 months |

Licensing is required under MiCA framework with moderate difficulty to obtain.

## AML / KYC

| Field | Value |
|-------|-------|
| KYC Required | Yes |
| Travel Rule | Yes |
| [[concept--fatf|FATF]] Member | Yes |
| FATF Status | compliant |

## DeFi

**Status:** regulated

DeFi activities are regulated under the broader MiCA framework and subject to AML and licensing requirements.

## Stablecoins

**Status:** regulated

Stablecoins are regulated under the MiCA framework with specific rules for issuance and operation.

## NFTs

**Status:** no_rules

No specific NFT regulation

## Mining

| Field | Value |
|-------|-------|
| Legal | Yes |
| Electricity Cost | $0.048/kWh |
| Renewable Energy | 100% |
| Climate | temperate |
| Infrastructure | good |

Iceland offers excellent conditions for mining with low electricity costs and 100% renewable energy from geothermal and hydro sources.

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | stable |
| Sanctions | No |
| Corruption Index | 74/100 |
| Ease of Business | easy |
| Internet Freedom | free |
| Banking Access | open |

## Enforcement

FME has focused on AML compliance and consumer protection warnings.

## CBDC Status: unknown

---

*Data source: [Soken Crypto Legal Map](https://soken.dev/crypto-map/). Last reviewed: 2026-04-13.*

**Sources:**
- [FME / Central Bank of Iceland](https://www.sedlabanki.is)