Jurisdiction reference
Iceland
Regulator: FME (Fjármálaeftirlitið). License/registration context: Registration. 6 VASP/entity records are tracked by Plexo Institute in Iceland. Official registry source: EUR-Lex Regulation (EU) 2023/1114 on markets in crypto-assets. Data last updated: 2026-09-30.
Iceland operates under a transitional regulatory framework for stablecoins combining existing e-money regulations with pending MiCA implementation. Act no. 17/2013, implementing EU Directive 2009/110/EC, has governed electronic money issuance since 2013. Iceland expects to formally implement MiCA through legislative action, bringing comprehensive crypto-asset regulation into force. Concurrent with this, Act no. 56/2024 on distributed ledger technology infrastructure establishes a regulatory sandbox for DLT-based financial instruments.
Regulatory Status
- Jurisdiction code
- IS
- Regime
- Registration
- Regulator
- FME (Fjármálaeftirlitið)
- Governing law
- Act on Virtual Currency Service Providers 2020
- Travel Rule
- Enforced
- Tracked entities
- 6
- Recognized stablecoin backing
- fiat-backed, crypto-backed, commodity-backed
- Yield-bearing stablecoins
- Restricted
- Currency
- ISK
Regulatory approach
The Central Bank of Iceland serves as Iceland's integrated monetary and financial stability authority. It supervises electronic money institutions under Act no. 17/2013, ensuring compliance with reserve segregation, safeguarding, and redemption requirements. Upon MiCA implementation (expected 2026), the Central Bank will expand its mandate to supervise full MiCA compliance. The Financial Supervisory Authority (FME), operating under the Central Bank's authority, issues operating licenses to e-money institutions and oversees their prudential compliance. Crypto-asset service providers face limited Central Bank supervision, restricted to anti-money laundering and counter-terrorist financing compliance under Act no. 140/2018, with no consumer protection oversight currently mandated.
Licensed entities in Iceland
6 regulated-entity records tracked in Iceland by Plexo Institute.
| Entity | Status | License type |
|---|---|---|
| Blikk hugbúnaðarþjónusta hf | Licensed | Payment Institution (PI) |
| Monerium ehf | Licensed | E-Money Institution (EMI) |
| Monerium EMI ehf | Licensed | E-Money Institution (EMI) |
| Rapyd Europe hf | Licensed | E-Money Institution (EMI) |
| Straumur greiðslumiðlun hf | Licensed | Payment Institution (PI) |
| Valitor hf | Licensed | Payment Institution (PI) |
Stablecoin laws in Iceland
Primary legal texts Plexo Institute tracks for Iceland.
- Act no. 56/2024 on Infrastructure for Financial Instruments Based on Distributed Ledger Technology (enacted 2024-06-20)
This act implements EU Regulation (EU) 2022/858 (DLT Pilot Regime) into Icelandic law. It creates a regulatory sandbox enabling financial instruments to be issued, traded, and settled on distributed ledger technology. The framework permits investment firms and market operators to apply for authorization to operate three types of DLT market infrastructure: DLT multilateral trading facilities, DLT settlement systems, and combined DLT trading and settlement systems. The regime applies to financial instruments not exceeding EUR 6 billion in aggregate market value and requires monthly reporting to competent authorities. This enables blockchain-based financial instruments while maintaining investor protection standards.
- Act no. 17/2013 on the Issuance and Handling of Electronic Money (enacted 2013-03-06)
This is Iceland's foundational e-money legislation, implementing EU Directive 2009/110/EC. It establishes the complete authorization and prudential framework for electronic money institutions, including minimum capital requirements (EUR 350,000), mandatory fund safeguarding through segregation or insurance, prohibition of interest payments, and authorization requirements from the Central Bank of Iceland. The act explicitly covers e-money tokens on blockchain. Monthly fund attestations and annual independent audits are mandatory.
Relationship Graph
Jurisdiction FAQ
Who regulates Iceland?
The current Plexo Institute record lists FME (Fjármálaeftirlitið) as the regulator for Iceland.
How many VASPs are tracked in Iceland?
6 VASP/entity records are tracked by Plexo Institute in Iceland.
What is the Travel Rule status in Iceland?
The current Plexo Institute record lists the Travel Rule status for Iceland as Enforced.
Source Evidence
This profile is compiled from official legislation and regulator records. Source confidence: official source evidence.