Polymarket is accessible in Iceland — the platform does not geoblock Icelandic IP addresses. Iceland runs on the króna (ISK), has a cautious central bank and historically restrictionist banks toward crypto and foreign currency, and taxes crypto gains as capital gains at a flat 22%. Here’s what Icelandic users need to know about using Polymarket.
Current Status: Accessible
Iceland is not on Polymarket’s geoblocked countries list. The platform is fully accessible from Icelandic IP addresses, and Icelandic users can sign up, deposit, and trade on all available markets.
Iceland’s crypto history is distinctive: the country famously produced Auroracoin in 2014, an early attempt at a national cryptocurrency, amid the fallout of the 2008 financial crisis and strict capital controls. That same year the Central Bank of Iceland issued a public warning that neither Auroracoin nor Bitcoin is a recognised currency or form of legal tender under Icelandic law. Today the market has matured, and Myntkaup — the most popular local platform, with over 24,000 registered customers and ISK deposits — provides a practical on-ramp.
Prediction markets themselves sit in an unregulated grey area in Iceland. Icelandic law does not specifically address decentralized prediction markets, and there is no record of enforcement against Icelandic Polymarket users.
The Legal Landscape
The Central Bank of Iceland (Seðlabanki Íslands)
Iceland’s financial regulator is the Central Bank of Iceland (Seðlabanki Íslands). On 1 January 2020, the Central Bank absorbed the former Financial Supervisory Authority (Fjármálaeftirlitið, FME), making it the single authority for financial and securities supervision. The Central Bank therefore supervises banks, fintech services, and — within the scope of its wider remit — crypto-asset activity.
The Central Bank has long taken a cautious stance on crypto. In March 2014 it warned that virtual currencies carry significant risk and that neither Auroracoin nor Bitcoin is a recognised currency or legal tender in Iceland. Its posture towards crypto has been measured and (through the banking system) restrictionist rather than framed by a dedicated national crypto law.
Capital Controls and the Foreign Exchange Act
Iceland imposed strict capital controls after the 2008 financial crisis, which restricted the movement of krónur and foreign currency across the border. These were progressively dismantled and almost fully lifted in March 2017. The legacy Foreign Exchange Act has historically made cross-border fiat flows more involved than in other European countries, and Icelandic banks have tended to be cautious about processing crypto-related and foreign-currency transactions.
For a user, the practical effect is that the most reliable route into crypto is through a local, ISK-based platform such as Myntkaup that handles bank transfers and local instant-payment rails, rather than relying on foreign-currency deposits into Icelandic bank accounts.
MiCA and the EEA Framework
Iceland is a member of the European Economic Area (EEA), so the EU’s Markets in Crypto-Assets Regulation (MiCA) is being applied in Iceland through the EEA agreement. Iceland adopted MiCA with an 18-month grandfathering period, giving existing Icelandic crypto-asset service providers (CASPs) until around mid-2026 to comply with the new licensing regime. MiCA provides a clearer EU-wide framework for crypto-assets, which should gradually reduce the regulatory grey area.
Gambling and Prediction Markets
Icelandic law does not have a specific statutory framework for decentralized prediction markets. As with many jurisdictions, crypto-based event markets fall into an unregulated gap between gambling law, financial regulation, and crypto-asset rules. There is no enforcement action against individual Icelandic users of platforms like Polymarket.
How to Deposit from Iceland
Iceland has a small but functional on-ramp ecosystem thanks to Myntkaup and ISK-based instant payment rails.
Step 1: Buy USDC on a Local Exchange
| Exchange | Bank Transfer | Blikk / Netgíró | Card | Notes |
|---|---|---|---|---|
| Myntkaup | Yes (most deposits in under 20 min) | Yes (instant) | No | Iceland’s most popular platform; 24,000+ customers; supports USDC |
| Kraken | Limited | No | Yes | International platform with ISK pairings and wide crypto selection |
Myntkaup is the recommended local on-ramp. You fund your account with an ISK bank transfer (most deposits are credited in under 20 minutes, fee-free), or via Blikk or Netgíró, Iceland’s local instant-payment methods. USDC is one of the cryptocurrencies Myntkaup supports, so you can buy USDC directly in ISK before moving it to Polymarket.
Deposit Methods Explained
Bank transfer: Transfer ISK to your Myntkaup account number. Myntkaup reports that over 90% of bank deposits are credited in under 20 minutes, with no deposit fee, and deposits are processed every day of the year.
Blikk / Netgíró: These Icelandic instant payment rails let you top up your exchange account automatically and immediately. Deposits via Blikk and Netgíró are processed around the clock, subject to the platform’s fee structure.
Step 2: Transfer USDC to Polymarket
- Go to Deposit on Polymarket
- Select Use Crypto and copy your deposit address
- Send USDC from Myntkaup to the Polymarket address
- Choose Polygon for the lowest fees ($3 minimum, arrives in seconds)
For the full walkthrough, see our How to Deposit on Polymarket guide.
Tax Implications
Iceland does not have a separate crypto tax code. Crypto gains are generally treated as capital gains under the general tax framework.
Capital Gains Tax
Profits from selling crypto are subject to Iceland’s capital gains tax of 22% for individuals, the flat rate that applies to investment income and capital gains (Category C taxation). There is no preferential long-term rate for crypto — the 22% applies to realized gains from selling or exchanging crypto.
- Tax is calculated on net gains (the selling value minus the cost basis and associated fees)
- Losses may be deductible up to their proportional amount against capital gains in the same tax year
- The rate applies to Polymarket profits that are realised as taxable gains
Reporting
- You report capital gains on your annual tax return to Skatturinn, the Icelandic tax authority
- Iceland has no withholding tax on foreign platform trades — you are responsible for self-reporting your gains
- Keep detailed records of all deposits, trades, cost bases, and withdrawals, ideally in ISK
What You Don’t Pay
- There is no separate crypto surcharge — standard capital gains rules apply
- No VAT applies to crypto-to-crypto trading for individuals
Getting Started
If you’re in Iceland and want to start trading on Polymarket:
- Sign up for Polymarket — under 2 minutes, no KYC required
- Buy USDC on Myntkaup via bank transfer or Blikk/Netgíró
- Deposit on Polymarket — transfer USDC via Polygon
- Place your first trade — start with a small amount
- Use limit orders to avoid taker fees — only taker orders pay fees on Polymarket
Related Guides
- How to Sign Up for Polymarket — Create your account
- How to Deposit on Polymarket — Full deposit guide
- How to Trade on Polymarket — Market orders, limit orders, and tips
- Polymarket Fees Explained — Fee breakdown by category