Crypto Regulations in Iceland
When asked about cryptocurrency supervision, The Central Bank of Iceland’s Financial Supervisory Authority replied that as cryptocurrencies aren’t legal tender or currency in Iceland so they aren’t subject to legislation on payment services or electronic currency.
Source: Iceland Review
The current state of cryptocurrency regulation in Iceland is unclear due to the residual effect of legislation adopted in the wake of Iceland’s 2008 financial collapse. After Iceland’s economy when bankrupt, the government implemented controls to prevent its citizens from taking foreign currency out of the country to stem the outflow of capital. While this regulation remained in place, it acted as an indirect ban on bitcoin and other cryptocurrencies because they lead to capital movements out of the country.
Source: Freeman Law
In Iceland, any transactions with cryptocurrencies are allowed. The only exception refers to exchange transactions with cryptocurrencies that are considered illegal in Iceland, provided that such exchange is made from/to foreign currencies. It should be noted that Iceland is one of the leaders of the mining industry in the world and it has its own cryptocurrency – Auroracoin.
Source: Law & Trust
Cryptocurrencies may not be recognized as legal tender in Iceland, but it’s not illegal to trade in them. The government has officially cautioned Icelanders against trading in cryptocurrencies, but this is expected of a nation that suffered a dramatic financial crisis in 2008. In short, trading in crypto is entirely legal; the government just wants you to be careful if you’re doing it.
Source: Swapp Agency
A digital asset, in the form of untraceable electronic coins. They’re used as a reward in a verification process that authenticates financial transactions and validates when assets get transferred. There are thousands of cryptocurrencies, including Bitcoin.
Source: Penn Today
In Iceland, any crypto gains up to $7,000 are subject to under 40% tax, while bigger gains will incur 46%, the report notes. Under Israel’s tax regime, the sale of crypto is usually subject to capital gains tax, which is up to 33%. On the other hand, if crypto trading involves a business income tax, it may go as high as 50%
Source: Coin Telegraph
Cryptocurrency markets don’t require a license, they are not subject to laws no. 108/2007 on stock exchanges and aren’t subject to Central Bank of Iceland’s Financial Supervisory Authority’s supervision.” Furthermore, the Central Bank does not have any information on the extent of cryptocurrency trade.
Source: Iceland Review
Until now, cryptocurrency exchanges have been decentralized and unregulated worldwide. Outside of Iceland, it remains that way today. But in September 2018, Iceland finally said enough is enough.
Source: APR Energy
Iceland holds an attraction for cryptocurrency miners in need of cheap electricity to scour for new coins in the face of a boom and demand and prices. The price of the world’s most-traded cryptocurrency has climbed by about 80% during 2021, even after last weekend’s dramatic rout.
Source: Markets Insider
Hackers continue to demonstrate great interest in cryptocurrencies, and the number of crimes and crypto violations is on the rise. Crooks have stolen 600 powerful computers from data centers in Iceland to use in Bitcoin mining. At the time, the computers, that are worth almost $2 million, have not yet been found.
Source: Segurança Informática
Auroracoin Scam Auroracoin was marketed as a national Cryptocurrency for Iceland. This is a silly cause, but an understandable one because Iceland has had severe banking and economic problems, leading to high inflation rates. So a stable currency would help the economy. However, Auroracoin ended up being anything but stable.
Source: Privacy Cyprus
Some 11 people were arrested, including a security guard, in what Icelandic media have dubbed the “Big Bitcoin Heist.” A judge at the Reykjanes District Court on Friday ordered two people to remain in custody. The powerful computers, which have not yet been found, are worth almost $2 million.
Source: AP News
Police in Iceland have arrested 11 people suspected of stealing more than 600 computers that were being used to mine crypto-currencies, reports AP. The computers were stolen during four raids on data centers around Iceland. The country is a popular location for data centres because almost 100% of the power generated there comes from renewable sources. Two of the suspects are in custody, and nine have been released on bail. The stolen servers have not been recovered. The AP newswire said police were now contacting internet service provider (ISPs), electricians and storage units, asking them to report sudden spikes in power usage or other signs the stolen servers had been reconnected. The value of the stolen computers has been put at $2m (£1.45m).
Source: BBC News
The Icelandic data protection authority (‘Persónuvernd’) announced, on 28 January 2022, that it will launch, in collaboration with the Office of the Medical Director of Health and Digital Iceland, a regulatory sandbox pilot project for companies that are interested in developing artificial intelligence in health services. More specifically, the Persónuvernd highlighted, among other things, that the purpose of the sandbox is to increase knowledge of and provide insight into new and innovative solutions in the field of artificial intelligence, in addition to facilitating the analysis of potential risks in the processing of personal information at an early stage.
Source: Data Guidance
