The birthday suit not popular in Iceland
Anyone visiting Iceland ten years ago could have enjoyed many Icelandic steam baths and geothermally heated pools and lakes without difficulty in their birthday suit. Not any more.
It seems the age old custom of bathing and enjoying a swim in anything other than your bare skin has in just ten years given way to horrible looking Speedo´s and various forms of designer clothing.
You can no longer bathe naked anywhere without difficulty; loud screams from Japanese tourists and constant pointing and whispering among people from the United States. And some fancy places as the very expensive Blue Lagoon or Fontana steam baths in Laugarvatn explicitly forbid any kind of nudity.
This is a shame indeed and entirely the fault of the growing number of foreign tourists making demands about civility.
However, there are loads of places available for nude bathing but these are far away from the popular tourist destinations in or around Reykjavik area. In the highlands you can still do as you please and there are places and times where nudity will bother no one but far off the beaten track.
Indeed an ancient viking custom dictates everyone looking for happiness should roll around naked in nature on the night of 24th of June since that is one of four nights in Iceland when special unseen but powerful things take place in Iceland.