Due to the recent explosion of interest in cryptocurrency and all its implications for both new and traditional businesses, there is a growing need for clarity regarding the legal implications of these new technologies and currencies. As governments around the world, regulatory agencies, central banks, and other financial institutions are working to understand the nature and meaning of digital currencies, individual investors/traders can make a great deal of money investing in this new space. On the other hand, investors assume certain legal risks when they trade in cryptocurrencies. Much of the murkiness of the legal standing of cryptocurrency is because the space has only recently become popular as compared with more traditional currency and payment systems. Considering this, certain questions become quintessential in demystifying the potential bottlenecks investors/traders would encounter while transacting.