The cannabis industry faces many regulations and restrictions that others do not. One of the big issues faced by many cannabis companies is banking. More specifically it is the issue of finding a financial institution that will allow them to open bank accounts and perform transactions.
U.S Cannabis Businesses – Taxed but Unable to Bank
There are currently no other tax paying businesses in the US that cannot open and conduct transparent banking. It’s reported there are only 35 financial institutions in the entire US working with the cannabis market. The vice-chair of the NCAA’s Banking Access Committee and Executive Vice President of Business Development at Hypur, Tyler Beuerlein is well aware of this issue.
“As new markets mature, we expect more institutions to enter to transparently bank markets, especially in a market like California, because it’s such a large market. Then, from a regulatory compliance and banking standpoint, as regulatory bodies become more comfortable examining institutions banking this space, there are standards being set of how this industry can and should be banked. Those types of things help everybody at the end of the day.”
The U.S. is Missing Out on Millions
Banks in the United States are missing out on the millions and billions of dollars circulating through the cannabis sector. Meanwhile, cannabis business owners must stockpile cash in absurd manners while they risk their health and personal safety. All of this while operating a tax-paying business in America. It should be against the law for the US federal government to tax an industry while it remains federally illegal. It’s almost like they’re getting to bake their cake and eat it too.