Humans have always sought to explore unexplored areas in order to succeed in the race of competition and persistent innovation. These innovations add up to our lives and make them simpler, one such mindboggling innovation is Cryptocurrencies which exists on digital platform and are a form of virtual currency which is decentralised and protected by cryptographic encryption techniques. These are considered "digital gold" due to their skyrocketing demand irrespective of the fact that they were not given fiat status by the apex bank of any country. Nonetheless, the same notion does not hold good today as many nations have started adopting crypto as a part of their payments system. Also, worth to note is the fact that El Salvador legalised crypto recently owing to its lucrative returns. It is usually said that every coin has a flip side and hence even crypto, apart from being a lucrative income and investment poses certain legal challenges to common Populus as well as the nation as a whole. Be that as it may, the author will initially explain the functioning of the cryptos and the plausible rationales driving its high demand, enthusiasm, and craze. Thereafter, the author will try to bring out the major legal problems which may conceive once a country adopts crypto as its fiat. The author also will attempt to compare the legal framework which is put in place by modern democracies to regulate cryptos. The author will also attempt to analyse the plausible rationale behind scepticism in the acceptance of cryptocurrencies. Later the author will bring out the legal blockades in the acceptance and approbation of cryptocurrencies as legal tender. Finally, the author will conclude by suggesting plausible solutions in the acceptance of cryptos.