Is crypto legal in Iceland? Regulation & rules (2026)

EU Regulation 2023/1114 (MiCA) applies across the EEA including Iceland, providing a single licensing passport for crypto-asset service providers and issuers across all EEA states. The Central Bank of Iceland is designated as the national competent authority for MiCA supervision.

CASPs that provided services under Iceland's national law (Act 140/2018 / Rules 152/2023) before 30 December 2024 may continue until 1 July 2026 or until MiCA authorisation is granted or refused. ESMA's April 2026 statement confirms this deadline applies across the EEA.

Before MiCA, Iceland required virtual asset service providers to register with the FME under Act No. 140/2018 and Rules No. 152/2023, mandating AML/KYC compliance, director suitability assessments, and documented risk assessments.

In 2023 the FME (Financial Supervisory Authority) was merged into Seðlabanki Íslands (Central Bank of Iceland), which now serves as the single financial supervisor and the designated MiCA national competent authority for Iceland.

Skatturinn classifies individual crypto disposal gains as capital income taxed at a flat 22%. Mining, staking, and airdrop receipts are treated as ordinary income taxed at progressive personal rates (approximately 31–46%). Annual year-end portfolio value must also be declared.

A 2023 IMF FSAP Technical Note on Iceland's AML/CFT framework confirmed compliance with FATF Recommendations as they apply to virtual asset service providers, with the FATF 2020 Follow-Up Report also noting Iceland's implementation of FATF standards for VASPs.