I know it illegal to sell alcohol without a licence but would bitcoin get around that problem as technically/legally speaking its not money.
What exactly is the definition of "sale of alcohol" in your juristiction? I think you'll find that it does not actually require the medium of exchange to be legal tender (otherwise people would just use foreign currencies get around it). I think you'll also have a hard time convincing a judge that a fungible commodity (which is what bitcoin is) with the word "coin" in the name is not technically money.