Fast-forwarding to today, Azalea says that she encounters a lot of racism over her music career since she was noticed as the "tall blonde who rapped".
"Yeah, but it's retarded," she says of the prospect that a lot of people in America would consider her a fake. "The Rolling Stones go to America, play 'black' blues music, and nobody has a f***ing issue with it or thinks it's weird.
"But here we are, 50 years later, in the 21st century, and people are like, this is so weird that you're white, from another country, and you like black music.' Why is it not weird for Keith Richards or Mick Jagger, but it's so weird and taboo for me?"
She has a message for her naysayers, though.
"If you're mad about it and you're a black person then start a rap career and give it a go, too," she says. "I'm not taking anyone's spot, so make yourself a mixtape.
"Or maybe if you're black, start singing like a country singer and be a white person. I don't know. Why is it such a big deal? This is the entertainment industry. It's not politics. You should be more concerned about the message, not the voices saying it."
Check out Iggy's full interview in the Oct./Nov. issue of Complex and at Complex.com.