Despite being legal in a growing number of states for either medical or recreational use, cannabis is still illegal under federal law. The resulting regulatory uncertainty has effectively locked the industry out of the traditional financial system. Dispensaries and other cannabis companies have largely been shunned by federal banks and credit card networks, forcing them to hoard cash on-site – a practice that has made them a growing target for violent robberies – or pay exorbitant fees to bank at state-chartered institutions.
To many, crypto seems like the natural solution. Cannabis companies could, in theory, bypass the legacy financial system by accepting crypto payments and storing the money in crypto wallets rather than store stacks of cash (although that would likely attract a different sort of thief).
But theory doesn’t always match reality.
‘Enforcement 40’ for 2020
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