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?
It is perfectly legal in Iceland to pay for goods and services with other things than ISK, as long as you pay VAT and all other taxes. For hundreds of years barter has been the the way Icelanders did business.
We sent formal letters from our lawyer to the Central Bank and the Financial Supervisory Authority in Iceland regarding opening a business in Iceland trading Auroracoin/Bitcoin, operating a brokerage business for crypto, buying and selling Auroracoin/Bitcoin in Iceland on behalf of customers. Both the CB and the FSA sent us formal replies warning of the risk of crypto but saying that there are no laws that prohibit doing such business in Iceland. The FSA also confirmed that we don't need a money transmitter license for these kinds of businesses.
Auroracoin and Bitcoin are not seen as "currency" by the Icelandic government, since they are not issued by a foreign state and are not issued as debt by the issuer. Therefore laws such a the Icelandic Foreign Exchange Act do not apply.
This is also the reason we are opening an ISK/AUR exchange located in Iceland, where there will be no FX trade, just ISK and crypto.