Though a total of 28 states have legalized marijuana in some form of consumption/use, marijuana is still federally illegal, which hinders licensed marijuana businesses from opening an account with most national banks. Cannabis businesses must instead deal in cash, which puts them at risk of break-ins, theft and other threats, as well as creates space for tax fraud. However, for smaller banks, credit unions and companies like SingleSeed, the lack of banking solutions creates the opportunity to fill increasing demand.
A group of 10 senators recently penned a letter (https://nnw.fm/0Kbvs) to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) encouraging guidance and changes that could ultimately open the door for banking services for legal cannabis businesses.
Among other key points, the letter explains that banking products and services to the cannabis industry will hedge businesses against unnecessary risks while benefiting the federal government.
“The fledgling legal market for marijuana is around $7 billion, a figure that’s dwarfed by the overall billion US market, most of which remains illegal. This business environment is an invitation to tax fraud, robberies, money laundering, and organized crime … With tens of millions of Americans soon gaining legal access to marijuana under state laws, new guidance is necessary in order to allow banks to enhance the availability of financial services for indirect businesses that service the marijuana industry. This will not only bolster the safety of our communities, but it will also help to spur economic growth across the country,” the three-page letter reads.
As one of the first merchant service providers in the marijuana industry, SingleSeed applauds the senators’ efforts and will offer marketing solutions and credit card processing to help cannabis dispensaries safely and successfully grow their businesses.
“We are witnessing exciting, groundbreaking advances in the marijuana industry, and are encouraged to see congressional-level support for banking measures that would further revolutionize the way cannabis companies do business,” says SinglePoint CEO Greg Lambrecht. “The regulatory environment is rapidly changing and SingleSeed is gearing up to provide dispensaries with payment processing solutions specifically tailored to their needs.”
About SinglePoint, Inc.
SinglePoint, Inc. is a full-service mobile technology and marketing provider. We provide solutions that allow our clients to conduct business transactions, accept donations, and engage in targeted communication through mobile devices. Our products connect small to mid-size companies to their target markets by providing innovative mobile technology at reasonable rates. SinglePoint recognized the strength in acquiring interest in undervalued subsidiaries in other markets, such as Daily Fantasy Sports, to create a diversified holding base.
For more information visit www.SinglePoint.com.
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