The problem with the freezing of Icelandic Bank assets in the UK was because the Icelandic GOVERNMENT was seeking to try to take assets out of the UK branches of the Icelandic banks to take bake to Iceland and PREFERRENTIALLY pay off Icelandic creditors, whilst leaving insufficient funds in the UK to even pay off the statutory minimum payouts and KNOWINGLY pretending to rely on an insurance fund which ALSO had INSUFFICIENT funds to pay off the STATUTORY mimimum payouts.
In other words, they were taking UK held assets to unfairly pay-back Icelandic creditors whilst KNOWINGLY leaving insufficient funds in the UK (including an insufficient insurance fund) to pay off the legal minimum.
As the Icelandic government were acting in basic contravention of the legal requirements of this country the UK government stepped in to try to stop the transfer.
The Icelandic government's manufactured cry of outrage at the UK using an anti-terrorism law is merely a smokescreen to hide the fact that it had been found out acting both illegally and (more important if anyone ever wants to bank with an Icelandic firm in the distant future) in a partial manner, favouring Icelandic creditors over foreigners.
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