A couple of problems: Iceland is small so although it has an image as a cool sensible safe Scandinavian country it wouldn't take many voters to put in a far right/far left president who might screw up your business model.

Do you know the details of Icelandic law? Does your corporate lawyers? Your regulation compliance officers? How many Icelandic Intelectual Property specialists can you hire tomorrow? There is a reason that banks have HQs in London/New York - they have a few hundred years of case law that they understand.

Iceland is bankrupt, which means it is under thumb of the IMF which means it will do whatever Washington says. Do you want your data to be ruled officially by Reykjavik but unofficially by MPIA/RIAA/Whoever says.