Claims of cryptocurrencies being possibly used for terrorism and contraband purchases dates back several years now and are almost as old as the market itself. So far, however, there has been no major evidence linking the two, apart from the Silk Road scandal that revealed bitcoin to be the primary vehicle for drug and armament related transactions. Despite that fact, it is important to note that cryptocurrencies, including bitcoin, have found several legitimate uses. It is clear now that India does not wish to embrace cryptocurrencies as a payment alternative and instead, regulate them as a new asset class. Such behavior has been demonstrated by several governments in the past, including the United States. After all, permitting payments in cryptocurrency allows people to bypass state-backed fiat currencies entirely.