The biggest misconception is that the coin is somehow tied with the Icelandic government where in reality it isn't. It makes such claims on the official page but this is false.
I don't see any such claims. Forgive me, can you point me to it?
It's due to the text/article on the mainpage that states this is the cryptocurrency of Iceland, like being the one only or an "approved" one. It's in fact one that might have created in Iceland and that's about it. Sematics but still...
Also
A national ID database, created by the government will be used for this purpose.
It might be public record in Iceland and all, but in other european states it's not legal to have access to such a list, due to security reasons. Even the ID number, one printed on the ID card, one assign to each citizen, is in some countries protested by privacy laws to prevent theft of identity.
So now you understand how some people think this is the crypto of Iceland, maybe backed by the government...