THELOGICALINDIAN - n-a
Crypto and cannabis accept captured the accessible acuteness over the aftermost year or two. Both are new, both are generally profitable, and both pit arising economies adjoin absolute regulations. Little highlights the band fatigued amid states’, federal and all-embracing boundaries like edger and cryptocurrency.
In 2018, seven states (Alaska, California, Colorado, Massachusetts, Nevada, Oregon, Washington) and the District of Columbia accurately acquiesce recreational acceptance of cannabis. Twenty-nine states (including the seven rec states) acquiesce alleviative THC, and addition 17 acquiesce alleviative CBD.
Even in the four states (Idaho, Kansas, Nebraska, and South Dakota) area cannabis is absolutely prohibited, it’s about alone a abomination to be bent with it. But federal laws still allocate it as a schedule I drug, forth with heroin, MDMA, and ablution salts.
It seemed like the government was alive against rescheduling the biologic during the Obama administration. On August 29, 2013, Deputy Attorney General James Cole issued what’s bargain accepted as the Cole Memo, which about deprioritized the case of marijuana-related crimes. However, Attorney General Jeff Sessions rescinded this memo on January 4, 2018, calling for abounding administration of federal marijuana laws.
The move beatific all-overs through the legalized cannabis industry, as it was fabricated bright accurately operating dispensaries could acquisition themselves annoyed bottomward by the Drug Enforcement Agency and Department of Justice.
Despite the calefaction actuality put on the cannabis industry, nearly a dozen cannabis-based cryptocurrencies accept popped up back 2014. They’ve abundantly been ignored. Most recently, Future Farm Technologies, Inc., a Vancouver, BC-based cannabis aggregation bought a 51% pale in FlipCoin. It’s not absolutely a cryptocurrency, but an app-based point of auction (POS) that connects to CoinBase to let barter acquirement cannabis at dispensaries application their cryptocurrency of choice.
We’ll accept to delay for its barrage after this ages to apprentice if FlipCoin gets adopted by the cannabis industry and its consumers. However, there are acceptable affidavit Future Farm believes it will.
The Shaky Relationship of Cannabusiness and Banking
Because it’s federally illegal, cannabis-based businesses charge affected several hurdles to access any cyberbanking services. After the Cole Memo, the Department of the Treasury FinCEN issued guidance for FDIC- and NCUA-insured banking institutions adulatory to account the cannabis industry. Last month’s DOJ changeabout has FinCEN reevaluating its rules.
This leaves cannabis companies at a above disadvantage. Carrying banknote about isn’t a abundant abstraction – the industry raked in $9 billion in sales in 2017, and that abundant money would be beefy ($1 billion in $100 bills weighs 20,000 pounds!) and allure theft. Being unbankable additionally makes it added difficult to accomplish accepted operational business processes like payroll.
Many banks already alone cannabis businesses, and it looks like the situations is accepting grimmer. Banks are abashed aperture accounts with cannabis businesses would breach the Money Laundering Control Act of 1986. Doing so could account them to be fined up to alert the amount of the acreage complex in the transaction and confined for up to 20 years.
HSBC afresh got fined $1.9 billion for accepting $881 actor in biologic money deposits from cartels in Mexico and Columbia. So cryptocurrency is adorable to cannabis companies, but can FlipCoin break their problems?
The Promise of FlipCoin – Crypto And Cannabis Finally Friends?
The above affairs point of FlipCoin is the adeptness to instantly barter cryptocurrencies amid anniversary added and into authorization currencies. Crypto and cannabis are, of course, no strangers. Bitcoin rose to bulge as the adopted adjustment of acquittal for affairs on the dark web’s Silk Road marketplace. In fact, advisers at Qatar University published a report on January 23 assuming how those Silk Road biologic affairs could be traced through Bitcoin’s accessible blockchain ledger.
This akin of accuracy may alarm bodies abroad from application crypto to buy shrooms from their bounded dealers, but the cannabis industry welcomes transparency. These businesses self-identify. They authority business licenses. Their every transaction is tracked by accompaniment regulators, and they pay their taxes like anybody else.
Because of this environment, cannabis-based cryptocurrencies accept abounding the market. HempCoin is the accepted bazaar leader, with over 230 actor tokens in apportionment and a bazaar cap aloof over $40 million. PotCoin has over 219 actor tokens in apportionment and a bazaar cap of over $34 million. It acquired national absorption in June 2017 by sending retired NBA brilliant Dennis Rodman aback to North Korea.
Paragon isn’t abaft far behind. The pot-based bill founded by above archetypal and Miss Iowa Jessica Versteeg currently has a market cap over $20 million. Although (or conceivably because) Paragon partnered with rapper The Game for its ICO, abounding analysts doubt its viability. (We had a laugh at its expense, at one point.)
CannabisCoin takes things a footfall added by authoritative its tokens redeemable for product, at a amount of one CannabisCoin for one gram of cannabis. At the accepted bazaar amount of $0.08 per CannabisCoin, that marks the cheapest gram you can buy anywhere in the world. The cheapest gram prices in the U.S. are aloof beneath $8 per gram in Denver and Seattle, according to Leafly.
Still, no cryptocurrency (even media darlings Bitcoin, Ethereum, and Ripple) has acquired boundless accepting amid the cannabis industry. Volatile appraisement structures and acrimonious government regulations accomplish them annihilation added than a fad at the moment.
If FlipCoin can breach through and assuredly ally cannabis and cryptocurrency, added ability to them. We aloof achievement the advisers at Future Farm don’t end up actuality active in money bed-making schemes, abnormally if they end up demography CoinBase bottomward with them. Cryoto and cannabis would assume to be an about ideal ambition for the IRS… and Al Capone’s apparition is watching.
