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Iceland

Iceland applies MiCA through the EEA Agreement, with the Central Bank of Iceland (which absorbed the Financial Supervisory Authority in 2020) as the competent authority for CASP authorisation and supervision; MiCA was incorporated into the EEA Agreement in 2025 and Iceland implemented it later than the EU, around the end of 2025, so its grandfathering window runs from that entry into force. Payments and e-money follow PSD2 and EMD2 via the EEA Agreement, supervised by the Central Bank, with DORA in force. Gambling is highly restrictive: a state and charity monopoly under the Lotteries Act, with no private or online-casino licensing — and Iceland uses the króna, sits outside the euro area and banking union, and taxes individual crypto gains at a flat 22% as capital income.

Available licences

Crypto-Asset Service Provider authorisation (Central Bank under MiCAR via the EEA)

Custody, operation of a trading platform, exchange of crypto-assets for funds or other crypto-assets, execution, placing, reception and transmission of orders, advice, portfolio management and transfer services require Central Bank authorisation under Article 63 MiCAR; an authorisation passports across the EEA.

Asset-Referenced Token (ART) issuer authorisation (Central Bank)

Public offering or admission to trading of a token referencing a basket of values, rights or currencies requires authorisation as an ART issuer under Title III MiCAR, supervised by the Central Bank.

E-Money Token (EMT) issuer (credit institution or EMI; Central Bank)

EMTs (including fiat-backed stablecoins) may be issued only by an authorised credit institution or e-money institution, with redemption at par; the Central Bank is the prudential supervisor. Iceland is home to Monerium, an authorised EMI behind the regulated EURe e-money token.

Article 60 MiCAR notification route (existing financial entities)

Credit institutions, investment firms, e-money and payment institutions and other authorised entities may provide specified crypto-asset services by notifying the Central Bank at least 40 working days before starting.

Payment Institution authorisation (Central Bank)

A licence to provide payment services under the Icelandic payment-services framework (transposing PSD2 via the EEA Agreement), supervised by the Central Bank and passportable across the EEA.

E-Money Institution authorisation (Central Bank)

A licence to issue electronic money and provide related payment services, with EUR 350,000 minimum initial capital, supervised by the Central Bank.

Account Information and Payment Initiation Services (Central Bank)

Open-banking providers — account information and payment initiation service providers — fall within the payment-services framework, with strong customer authentication.

Banking authorisation (Central Bank)

Deposit-taking and lending require a banking licence from the Central Bank; because Iceland is outside the banking union, there is no ECB/SSM role and the Central Bank is the sole banking supervisor.

Investment firm authorisation (Central Bank — MiFID II via the EEA)

Investment services in financial instruments require Central Bank authorisation under the EEA-aligned MiFID II framework.

Lottery and sports-betting concession (Ministry of Justice — reserved)

Permitted lotteries and sports betting are reserved to designated state and charitable entities; there is no licence available to private commercial operators.

Detailed overview

Iceland at a glance

Iceland applies MiCA via the EEA Agreement, with a single consolidated supervisor, a flat crypto tax and a closed gambling market. Crypto is supervised by the Central Bank of Iceland; MiCA was incorporated into the EEA Agreement in 2025 and implemented in Iceland later than the EU, around the end of 2025. Payments follow PSD2 and EMD2 via the EEA, with the Central Bank as supervisor and DORA in force. Gambling is reserved to state and charitable entities under the Lotteries Act. The króna is the currency, and Iceland sits outside the euro area and banking union, so the Central Bank is the sole banking supervisor.

Crypto regime under MiCA — Central Bank-led via the EEA:

  • MiCA via the EEA — Regulation (EU) 2023/1114 (MiCAR) applies through the EEA Agreement; MiCA was incorporated in 2025 and Iceland implemented it later than the EU, around the end of 2025
  • Competent authority — the Central Bank of Iceland, which absorbed the FME in 2020 into a single consolidated regulator for banking, insurance, securities and crypto, and maintains a CASP register
  • Grandfathering — because Iceland implemented MiCA later than the EU, its transitional window runs from its own national entry into force, not from 30 December 2024; the exact application cut-off should be confirmed with the Central Bank
  • Pre-MiCA heritage — virtual-asset-service-provider registration with the Central Bank under Rules No. 151/2023 and 152/2023 (AML), conferring no passport
  • Market character — Iceland's cheap, near-100% renewable geothermal and hydro power made it a crypto-mining hub, though the government has cooled on mining (energy-efficiency and capacity caps); its fintech sector includes Monerium's regulated EURe e-money token
  • AML/CFT — Iceland's AML framework (implementing the EU directives) applies, with the Financial Intelligence Unit; the EU AML package and AMLA in Frankfurt apply in the EU from 10 July 2027, with EEA incorporation to follow
  • TFR / DORA — the Travel Rule and DORA apply via the EEA Agreement; CARF crypto-tax reporting is committed for 2027
  • Tax — individual crypto gains are taxed as capital income (fjármagnstekjur) at a flat 22%, with no holding-period relief; crypto-to-crypto swaps and spending are taxable disposals, while own-wallet transfers are not. Loss relief is unusually restrictive — losses offset gains only within the same cryptocurrency in the same year, with no cross-crypto offset — and taxpayers must also declare year-end holdings. Mining, staking and airdrops are taxed as income at progressive rates (roughly 31–46%); companies pay 20% corporate tax

Payments and e-money regime (Central Bank-led):

  • PSD2 / EMD2 via the EEA — transposed into Icelandic law and supervised by the Central Bank
  • Payment Institution licensing — initial capital EUR 20,000 (money remittance), EUR 50,000 (payment initiation) and EUR 125,000 (other payment services), in ISK equivalents
  • E-Money Institution — EUR 350,000 initial capital; stablecoin (EMT) issuers must be EMIs or credit institutions (Monerium is an Icelandic example)
  • DORA (Regulation (EU) 2022/2554) — applies via the EEA Agreement
  • PSD3 / PSR — the EU package (political agreement November 2025, compromise texts April 2026, adoption expected during 2026) will repeal PSD2 and EMD2 and fold EMIs into payment institutions; EEA incorporation would follow
  • Banking — Iceland is outside the banking union, so the Central Bank is the sole banking supervisor and there is no ECB/SSM role
  • Currency: króna (ISK); the Central Bank is the monetary authority

Gambling regime — closed state and charity monopoly:

  • Lotteries Act (Lög um happdrætti) and Criminal Code (Articles 183–184) — most gambling is prohibited unless specifically authorised; oversight sits with the Ministry of Justice
  • Permitted operators — lotteries and sports betting are reserved, on a not-for-profit basis, to designated entities such as Íslensk Getspá / Getraunir (lotteries and sports betting, including online), the University of Iceland Lottery (Happdrætti Háskóla Íslands) and Íslandsspil (slot machines, run for charities), with proceeds funding public and charitable causes
  • No private or online-casino licensing — there is no route for private commercial operators, online casinos or sportsbooks domestically
  • Offshore reality — Icelanders widely use offshore sites (often UK- or Malta-licensed), which are not enforced against individual players; substantial wagering and tax revenue flow abroad
  • Reform pressure — the European Gaming and Betting Association and others urge Iceland to adopt a multi-licensing model like Sweden and Denmark
  • Minimum age — 18
  • No EU passport — gambling is national

Last verified: July 2026. Reference rate: EUR 1 ≈ ISK 145; USD 1 ≈ ISK 127.

Iceland applies MiCA via the EEA Agreement with the Central Bank as sole supervisor, a flat 22% crypto tax with restrictive loss relief, and one of Europe's most closed gambling markets — a state and charity monopoly with no private licensing.

Is there a crypto licence in Iceland?

Yes. Iceland applies MiCAR through the EEA Agreement, with the Central Bank of Iceland authorising and supervising CASPs. Because Iceland implemented MiCA later than the EU, the transition runs from its own entry into force — confirm the exact cut-off with the Central Bank.

The legal foundation:

  • Regulation (EU) 2023/1114 (MiCAR) — applied through the EEA Agreement (incorporated 2025)
  • Icelandic implementing act — designating the Central Bank, in force from around the end of 2025
  • Rules No. 151/2023 and 152/2023 — the pre-MiCA virtual-asset registration (AML)
  • TFR (via the EEA) — Travel Rule for crypto-asset transfers

Structure:

  • An Icelandic entity with genuine substance and fit-and-proper management
  • MiCAR own-funds floors by class — EUR 50,000 (Class 1), EUR 125,000 (Class 2), EUR 150,000 (Class 3) — with the higher of the floor or a fixed-overheads measure
  • AML systems, a white paper for in-scope offerings, custody and client-asset segregation, ICT and governance documentation, and a business plan — filed with the Central Bank

Operational reality:

  • Iceland's later EEA implementation means dates differ from the EU; firms should confirm the precise transitional cut-off and register status with the Central Bank
  • A Central Bank CASP authorisation passports across the whole EEA, and EEA-authorised CASPs can passport into Iceland
  • New activity should be structured through a Central Bank authorisation, a valid EEA passport or an Article 60 notification

Official CASP roadmap: The Central Bank of Iceland is the competent authority and maintains a CASP register; MiCA applies via the EEA Agreement (incorporated 2025) and was implemented in Iceland around the end of 2025, so the grandfathering cut-off runs from that date and should be confirmed with the Central Bank. See the Central Bank of Iceland financial-supervision pages.

Payments & E-money (Central Bank — PSD2 / EMD2 via the EEA)

Best for payment, remittance, acquiring, wallet and e-money operators wanting an EEA base outside the euro area.

What it is: Authorisation as a payment institution or e-money institution under the Icelandic payment-services framework (PSD2 and EMD2 via the EEA Agreement), supervised by the Central Bank and passportable across the EEA.

Who it suits: Money-remittance and transfer providers, acquirers, card and wallet issuers, payment-initiation and account-information providers, and e-money issuers (including stablecoin issuers, who must be EMIs or credit institutions).

Covers: Payment services — incoming and outgoing transactions, transfers, card and instrument-based payments, money remittance, payment initiation and account information — plus issuance of electronic money.

Operational requirement: An Icelandic entity; minimum initial capital by service type; ongoing own-funds and safeguarding of client funds; strong customer authentication; AML/CFT; DORA operational-resilience obligations; and fit-and-proper management.

Headline figures

  • Primary instruments: PSD2 and EMD2 via the EEA Agreement; DORA (Regulation (EU) 2022/2554)
  • Regulator: Central Bank of Iceland (authorisation and supervision)
  • Entry capital: payment institutions EUR 20,000 / 50,000 / 125,000 by service type; e-money institutions EUR 350,000 (ISK equivalents)
  • Banking: outside the banking union — the Central Bank is the sole banking supervisor, with no ECB/SSM role
  • Reform pipeline: the EU's PSD3 / PSR (adoption expected during 2026) would later be incorporated into the EEA Agreement
  • Currency: króna (ISK); the Central Bank is the monetary authority

Is there a gambling licence in Iceland?

Largely no. Iceland runs a closed state and charity monopoly under the Lotteries Act, with no licensing route for private or online-casino operators.

The legal foundation:

  • Lotteries Act and Criminal Code (Articles 183–184) — most gambling is prohibited unless specifically authorised
  • Ministry of Justice — oversight of permitted games
  • Designated operators — state and charitable entities only

Structure:

  • Lotteries and sports betting are reserved, not-for-profit, to entities such as Íslensk Getspá / Getraunir, the University of Iceland Lottery and Íslandsspil
  • There is no licence for private commercial operators, online casinos or sportsbooks
  • Offshore sites are widely used but unregulated domestically

Gambling — reserved lottery and betting (Ministry of Justice)

Not available to private or foreign operators; the market is closed.

What it is: Permitted lotteries and sports betting operated by designated state and charitable entities, with proceeds funding public causes.

Who it suits: Designated Icelandic non-profit and state-affiliated bodies only; private and foreign operators are excluded.

Covers: Lotteries, football pools and sports betting (including some online via the reserved operators).

Operational requirement: Authorisation reserved to eligible entities, with proceeds directed to public and charitable purposes.

Headline figures

  • Primary instruments: Lotteries Act; Criminal Code (Articles 183–184)
  • Oversight: Ministry of Justice
  • Market structure: closed state and charity monopoly; no private or online-casino licensing
  • Reform: EGBA and others press for a multi-licensing model
  • Other: minimum age 18; offshore use widespread but unregulated

Costs and timelines at a glance

  • Crypto: MiCAR via the EEA Agreement, Central Bank of Iceland as competent authority; own-funds floors EUR 50,000 / 125,000 / 150,000 by class; transition runs from Iceland's later entry into force (confirm cut-off with the Central Bank)
  • Payments primary instruments: PSD2 and EMD2 via the EEA Agreement; DORA
  • Payments regulator: Central Bank of Iceland (sole banking supervisor — no ECB/SSM, outside the banking union)
  • Reform pipeline: the EU's PSD3 / PSR (adoption expected 2026) would follow into the EEA
  • Gambling: closed state and charity monopoly; no private licensing
  • Tax: crypto gains taxed at a flat 22% as capital income (restrictive same-coin loss relief); corporate tax 20%
  • Currency: króna (ISK); outside the euro area and banking union
  • FX: EUR 1 ≈ ISK 145; USD 1 ≈ ISK 127

Who Iceland suits and who it does not

Suitable for

  • Crypto exchanges, custodians and token issuers wanting an EEA base with Central Bank authorisation and full EEA passporting
  • Stablecoin (EMT) issuers and fintechs — Iceland already hosts a regulated e-money token issuer (Monerium / EURe)
  • Blockchain and infrastructure projects drawn by renewable energy and a strong tech base
  • Payment, e-money, acquiring and wallet operators wanting an EEA, non-euro base
  • Firms valuing political stability, rule of law and a single consolidated supervisor

Not suitable for

  • Firms needing certainty on transitional dates today — Iceland's later EEA implementation means the cut-off must be confirmed with the Central Bank
  • Active traders sensitive to tax — gains are taxed at a flat 22%, swaps are taxable, and cross-crypto loss offset is not permitted
  • Large-scale crypto miners — the government has tightened energy and capacity rules
  • Private or foreign gambling operators — the market is a closed state and charity monopoly with no private licensing
  • Firms wanting euro-area or banking-union supervision — Iceland is outside both, with the Central Bank as sole banking supervisor

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