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Rainbow Europe, the annual map of ILGA Europe shows that Iceland only complies to 47%  of the requirements of the ILGA compared to 59% in 2016. 
The map is an Annual Review of the Human Rights Situation of Lesbian, Gay, Bisexual, Trans and Intersex People in Europe. Ensuring legislative proposals on anti-discrimination within the area of employment include sex characteristics, so that the draft bill expressly mentions all SOGISC (sexual orientation, gender identity, sex characteristics) grounds. Updating the existing legal framework for legal gender recognition, to ensure the process is based on self-determination, and is free from abusive requirements (such as GID/medical diagnosis, or surgical/medical intervention). For more information see HERE.   
In order to improve the legal and policy situation of LGBTI people in Iceland, ILGA-Europe recommend:
Prohibiting medical intervention on intersex minors when the intervention has no medical necessity and can be avoided or postponed until the person can provide informed consent.