Summary
Cryptocurrency trading is legal in Iceland and regulated by strict rules. The Financial Supervisory Authority (FME) monitors crypto activities, and popular payment methods include bank transfers and credit cards. While some exchanges support the Icelandic króna (ISK), the Central Bank of Iceland and the Ministry of Finance play key roles in regulation. The 2018 “Rules on Virtual Currency Service Providers” govern crypto operations. Some of the best crypto exchanges in Iceland are:
Best Crypto Exchanges in Iceland
This comprehensive guide examines the top crypto exchanges available to Icelandic investors. We’ll explore platforms that support ISK transactions and offer preferred payment methods for Icelandic users, such as bank transfers and credit cards. Our analysis covers key factors including supported cryptocurrencies, fee structures, and compliance with local regulations.
1. Bitget
Users:
23m
Free Demo:
Mobile App:
Bonus
$6,200
Cryptos:
840+
Leverage:
125x
Spot Fees:
0.1%
Futures Fees:
0.02%/0.06%
Pros
- Over 800 cryptos
- Fair trading fees
- Great for EUR SEPA transfers
- 24/7 customer support
- Very beginner friendly
Cons
- Not available in the US
- No TWAP order supported
- Mandatory KYC for new accounts
Overview
Bitget is a true powerhouse for crypto traders from over 100 supported countries. What makes Bitget special is its beginner-friendly trading platform, which has over 800 supported cryptocurrencies. With so many supported cryptocurrencies, if you are looking to trade altcoins, Bitget might be one of your best shots.
With fiat support for 6 currencies, including EUR and RUB, Bitget is a top choice, especially for European users looking to deposit and withdraw funds in their native currency with ease. The 0% fee for SEPA transactions makes Bitget stand out. Credit card payments are also supported.
Experienced crypto traders can trade futures contracts on Bitget with 125x leverage on selected assets such as Bitcoin or Ethereum.
The spot trading fees start at 0.1% for makers and takers, which is very common in the industry. For futures traders seeking leverage for their day trading activities, Bitget charges very low fees of 0.02% maker and 0.06% taker.
2. MEXC
Users:
15m
Free Demo:
Mobile App:
Bonus
$20,000
Cryptos:
2400+
Leverage:
300x
Spot Fees:
0.05%
Futures Fees:
0.01%/0.04%
Pros
- Lowest Trading Fees
- 2000+ supported crypto assets
- 300x leverage and deep liquidity
- 24/7 customer support
- Best for altcoin and leverage trading
Cons
- Not available in the US
- Newly launched coins pose high risk
- May request KYC in the future
Overview
MEXC is known as the crypto exchange with the lowest fees. What makes MEXC stand out is its 0% maker fee offer, meaning you can trade without any fees. However, the spot and futures taker fees start at 0.02%. No crypto exchange can compete with the MEXC fee structure.
If you are a day trader seeking high leverage, MEXC may be one of your best options. With 300x leverage over 400 futures contracts and by far the lowest fees, MEXC is truly a day trading heaven.
Even if you are not interested in leverage trading, MEXC has you covered with over 2000 supported cryptocurrencies on the spot market. While MEXC offers tons of new altcoins, we recommend being cautious as the legitimacy of newly listed projects may be questionable.
All in all, MEXC is arguably the best option for high-frequency traders seeking low fees to get the best value for money.
3. Coinbase
Users:
100m
Free Demo:
Mobile App:
Bonus:
$10
Cryptos:
250+
Leverage:
5x
Spot Fees:
0.4%/0.6%
Futures Fees:
0.02%/0.05%
Pros
- Most beginner-friendly exchange
- Fully regulated and licensed
- Great customer support
- Reputable with over 100 million users
- Comprehensive fiat deposit methods
- Great wallet for on-chain access
Cons
- Lacks advanced features
- Very high spot trading fees
- Poor liquidity
Coinbase Overview
Coinbase is one of the largest and most well-known cryptocurrency exchanges for buying cryptos.The platform currently has a user community of over 100 million users worldwide. What makes Coinbase special is its user-friendly interface. The platform is designed to be easy to use, making it accessible for beginners. Coinbase offers a clean and intuitive interface for buying, selling, and managing cryptocurrencies.
Crypto traders have access to over 250 cryptos for active trading. One downside of Coinbase is the fee structure. When you place an order at the market price that gets filled immediately, you are considered a taker and will pay a fee of 0.60%, which is very expensive.
Another thing about Coinbase is that it offers a wide range of crypto services. These include wallets, NFT, crypto staking, Coinbase cards, and many more to help improve the overall trading experience on the platform. One of our favorite features is the Coinbase wallet.
It is suitable for beginners but also offers advanced trading tools including real-time charts, technical indicators, and many more for advanced traders.
4. Binance
Users:
200m
Free Demo:
Mobile App:
Bonus:
$100
Cryptos:
400+
Leverage:
125x
Spot Fees:
0.1%
Futures Fees:
0.02%/0.05%
Pros
- Most comprehensive crypto exchange
- Most advanced features and products
- 24/7 customer support
- 400+ cryptocurrencies
- Reputable with over 200 million users
- Best liquidity
Cons
- Not beginner friendly
- Restricted in many regions due to regulations
- EU traders must use BNFCR for futures trading
Overview
Reaching over 200 million registered users in 2024, Binance is by far the largest crypto exchange in the world. The platform is incredibly comprehensive, offering crypto traders all the tools they need to make a profit in the crypto market.
With over 400 cryptocurrencies to trade, leverage of up to 125x, directly integrated charts from TradingView with tons of technical analysis tools, and many more features, Binance has secured its spot as one of the best crypto exchanges.
Binance offers a wide variety of products, including spot, margin, futures, and options trading, staking, lending, P2P, automated bot trading, copy trading, and even an NFT marketplace. It is safe to say that crypto geeks will find everything they are looking for on Binance.
The trading fees on Binance are very affordable. Binance charges 0.1% trading fees on the spot market (makers and takers alike), which is the industry standard. Where Binance excels is the futures market with fees of only 0.02% for makers and 0.05% for takers.
5. Gemini
Users:
30m
Free Demo:
Mobile App:
Bonus:
$10
Cryptos:
76+
Leverage:
20x
Spot Fees:
0.25%/0.35%
Futures Fees:
0.02%/0.07%
Pros
- Most beginner-friendly exchange
- Fully regulated and licensed
- Great customer support
- Reputable with over 100 million users
- Comprehensive fiat deposit methods
Cons
- Lacks advanced features
- Very high spot trading fees
- Only 20x leverage and 76 cryptos
Gemini Overview
Gemini is a cryptocurrency exchange and custodian known for its strong emphasis on regulatory compliance and security.
The platform prioritizes security and employs various measures to protect user funds and data. These include two-factor authentication (2FA), cold storage, hardware security keys, and regular security audits. Gemini also offers insurance for digital assets held in its custody.
Gemini functions primarily as a spot trading platform, offering access to over 76 cryptos for active trading. Trading fees are set at 0.25% for makers and 0.35% for takers.
What makes Gemini stand out is its wide range of crypto services. Aside from spot trading, Gemini offers, Custody services, Gemini Earn, Gemini Pay, Active Trader, and many more to help users earn passive income and improve the overall trading experience on the platform.
Is Crypto Legal and Regulated in Iceland?
Cryptocurrency is legal in Iceland, but it operates under strict regulations. The Financial Supervisory Authority (FME) oversees crypto-related activities in the country. In 2018, Iceland implemented the “Rules on Virtual Currency Service Providers”, which established a regulatory framework for crypto businesses. These rules require crypto exchanges and wallet providers to register with the FME and comply with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations.
The Central Bank of Iceland has stated that cryptocurrencies are not recognized as legal tender, but their trading and ownership are permitted. The Ministry of Finance plays a role in shaping crypto policies, particularly regarding taxation. Iceland’s approach to crypto regulation aligns with EU directives, including the Fifth Anti-Money Laundering Directive (5AMLD), which has been incorporated into national law.
It’s important to note that while crypto trading is legal, the use of cryptocurrencies for foreign exchange transactions is restricted under Iceland’s Foreign Exchange Act. This limitation aims to prevent capital flight and maintain economic stability.
Is Crypto Taxable in Iceland?
Cryptocurrency is subject to taxation in Iceland. The Icelandic Tax Authority (Ríkisskattstjóri) treats cryptocurrencies as assets for tax purposes. Capital gains from crypto trading are taxed at a rate of 22% for individuals, while businesses face a corporate tax rate of 20% on crypto profits. Mining income is considered taxable and falls under the category of business income, subject to standard income tax rates.
Importantly, Iceland applies a wealth tax on assets exceeding 245 million ISK (as of 2023), which includes cryptocurrency holdings. The wealth tax rate is 1.5% on assets above this threshold. Crypto-to-crypto transactions are also taxable events, requiring careful record-keeping of all trades.
Iceland follows a realization-based taxation system, meaning taxes are due when cryptocurrencies are sold or exchanged, not when they are held. The tax year in Iceland runs from January 1 to December 31, with tax returns typically due in March of the following year.
Disclaimer:
Tax laws are subject to change, and individual circumstances may vary. It is strongly advised to consult with a qualified tax professional or financial advisor for personalized guidance on cryptocurrency taxation in Iceland.
How to Buy Crypto in Iceland
For Icelandic investors looking to enter the cryptocurrency market, the process is straightforward but requires careful consideration of local regulations and available options. We recommend using Bitget for its compliance with Icelandic regulations and support for popular payment methods.
Here’s a step-by-step guide to buying cryptocurrencies in Iceland:
- Select a Crypto Exchange: Choose a platform that supports ISK transactions and complies with Icelandic regulations. Verify the exchange’s payment methods and KYC requirements.
- Sign Up and Verify Identity: Create an account on the chosen exchange. Complete the KYC process by providing required documentation, typically including proof of identity and address.
- Deposit Funds: Transfer ISK to your exchange account. Popular methods in Iceland include bank transfers via online banking systems like Arion banki or Íslandsbanki, and credit card deposits.
- Select Cryptocurrency: Choose the digital asset you wish to purchase. Popular options include Bitcoin (BTC), Ethereum (ETH), or stablecoins like Tether (USDT).
- Execute Trade: Place a market or limit order to buy your chosen cryptocurrency. Review the transaction details, including fees, before confirming.
- Store Funds Securely: After purchase, transfer your crypto to a secure wallet. For long-term storage, consider using a hardware wallet for enhanced security.
Remember to stay informed about Icelandic tax obligations related to crypto transactions and keep detailed records of all your trades for tax reporting purposes.
Best Crypto Wallets in Iceland
Selecting the right crypto wallet is crucial for Icelandic investors to ensure the security of their digital assets while complying with local regulations. Hardware wallets offer the highest level of security and are particularly suitable for long-term storage. The Ledger Nano X and Trezor Model T are top choices, supporting a wide range of cryptocurrencies and providing robust security features.
For those preferring software wallets, MetaMask is a popular option for Ethereum and ERC-20 tokens, while Electrum is a solid choice for Bitcoin users. These wallets offer a balance of security and convenience, allowing users to interact with decentralized applications (DApps) and manage their portfolios efficiently.
Mobile wallets like Trust Wallet or Exodus provide convenience for day-to-day transactions and portfolio management. These multi-currency wallets support a vast array of cryptocurrencies and offer user-friendly interfaces suitable for both beginners and experienced traders.
For Icelandic users dealing with large amounts or seeking institutional-grade security, custody solutions like Fireblocks or Coinbase Custody provide advanced security measures and insurance options. These services cater to high-net-worth individuals and businesses, offering features like multi-signature authentication and cold storage.
When choosing a wallet, Icelandic users should consider factors such as supported cryptocurrencies, security features, ease of use, and compatibility with local exchanges. It’s essential to use wallets that facilitate compliance with Icelandic tax reporting requirements by providing detailed transaction histories.
Bottom Line
For Icelandic crypto enthusiasts, Bitget stands out as the top choice among the best crypto exchanges in Iceland, offering a robust platform with a wide selection of assets and competitive fees. MEXC follows closely as our second recommendation, providing an extensive range of cryptocurrencies and user-friendly features. Both exchanges prioritize security and regulatory compliance, crucial factors for Icelandic investors navigating the crypto landscape. Always conduct thorough research and consider your individual trading needs when selecting an exchange.
