Just read this analysis of the legality of Auroracoin and Bitcoin in Iceland by Dr. Peter Roudik of the Global Legal Research Center : http://www.loc.gov/lawweb/servlet/lloc_news?disp3_l205404097_text

If I am reading this right, Auroracoin is not recognized and cannot be used in payment of goods or services in Iceland. At all. It can't also be traded on exchanges based outside of Iceland or with non-Icelandic clients, since the Icelandic krona cannot leave the country (as per the Icelandic Foreign Exchange Act). I think the devs have very limited options with Auroracoin, and one wrong statement or move could see them breaking Icelandic laws.

So what is the end game, here? Surely this is all not a matter of speculation?