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 recognised 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?
This is just not correct. Either based on false information or misinterpretation of facts.
Cryptocurrencies are not by any means illegal in Iceland nor is there any restrictions to use it to trade goods and services. We are setting up an exchange here in Iceland where Icelandic people can buy and sell Auroracoin for ISK. Before we went ahead with that we had our lawyers send out official letters to The Central Bank of Iceland, The Financial Supervisory Authority and the Directorate of Internal Revenue (IRS). Each gave us an official reply back stating what we already knew as I have talked to them directly before but this was to make it official.
What it stated:They don't consider cryptocurrencies to be a legal currency as that requires that a consumer must be able to have a claim to an central issuer of a currency according to laws
nr.120/2011.
Current laws of Iceland do not protect consumers for possible loss of cryptocurrencies in case an exchange that holds consumers cryptocurrencies fails their duty or in case a payment goes into the wrong hands.
Now the part that is the source of all the misinterpretation and misunderstanding.Icelandic laws do not require that any special permission needs to be given from the central bank for trade with cryptocurrencies. However the central bank states that when it comes to currency trade the central bank has their role according to laws
nr. 87/1992 and that applies to cryptocurrencies like anything else. It is the central banks view that there is no authorisation to buy foreign currency of an financial institution in Iceland nor to move foreign currency out of the country in regards to business with cryptocurrencies.
Current laws do not assume any other possible intervention of the central bank for the type of business that you describe in your request other than what is stated in this letter.
We got the same answers from the other institutes all pointing towards a joint statement they did at the time of Auroracoins initial release. That statement holds pretty much the same as the official letters we got back from them.
The Financial Supervisory Authority
http://www.fme.is/utgefid-efni/frettir-og-tilkynningar/frettir/nr/2041The Central Bank of Iceland
http://www.sedlabanki.is/utgefid-efni/frettir-og-tilkynningar/frettasafn/frett/2014/03/19/Advorun-til-almennings-um-syndarfe-e.-virtual-currencies/http://www.sedlabanki.is/utgefid-efni/frettir-og-tilkynningar/frettasafn/frett/2014/03/19/Notkun-syndarfjar-getur-fylgt-mikil-ahaetta/Directorate of Internal Revenue
http://www.fme.is/utgefid-efni/frettir-og-tilkynningar/frettir/nr/2041Ministry of the Interior
http://www.innanrikisraduneyti.is/frettir/nr/28881Ministry of Finance and Economic Affairs
http://www.fjarmalaraduneyti.is/frettir/nr/17813So what this translates to is that there are no restrictions for people in Iceland to buy, own or trade cryptocurrencies. It only states that we do not get an exception from the currency restrictions and buy foreign currency for the purpose to buy cryptocurrency. Meaning that it applies to cryptocurrencies like anything else here in Iceland.
All these links to laws and articles are in Icelandic but for those of you not speaking Icelandic I would think Google translate should give accurate enough information.
If this is the case, then someone should get in touch with Dr. Roudik and brief him of the facts. The Library of Congress is an important resource for American lawmakers, world policymakers, journalists and students - more so its branch, the Law Library of Congress. Imagine how many people are laboring under the assumption that Auroracoin is without any utility. If Dr. Roudik is sufficiently convinced, who knows, he might write a new analysis and the LoC could be updated. There are only three cryptos (Bitcoin, Litecoin and Auroracoin) mentioned in the entire LoC - the biggest library in the world, containing over 158 million books and documents. Take advantage of this rather than allowing statements like "
" go uncorrected.