Berlin’s public transport company BVG, already popular for its playful marketing campaign, just launched a new one — edible “hemp tickets.”
That’s right, the transport operator introduced a ticket made from edible paper sprayed with hemp oil just in time for the holidays, joking that it’s meant to reduce the stress of Christmas travel, reported Reuters.
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But, cannabis enthusiasts be aware: the edible “hemp ticket” doesn’t contain CBD or THC, or any other such substance for that matter. The hemp oil on the tickets is made from the seed of the cannabis plant, claiming to offer a “relaxing effect.”
“Of course this is all to be taken with a twinkle in your eye,” BVG spokesman Jannes Schwentu said, adding that the idea for the ticket was to encourage Berlin residents to take the bus or the subway during the busy and sometimes stressful Christmas period.
The tickets, available for one week, cost around $9.94 and are valid for 24 hours.
“We do make very clear that anyone who wants to use the ticket as an actual ticket, please only nibble on it or eat it after your journey as if it has a bite out of it, it is no longer valid,” Schwentu highlighted.
The hemp ticket launch comes on the heels of Germany’s plan to legalize marijuana — a move that could bring $3.85 billion in annual tax revenue.
A recent CNN article makes you believe that smoking cannabis will impact your sleep, especially if you smoke more than 20 times in a single month.
Many people consume cannabis to help sleep. It’s one of the more common uses of within a medical context. However, a recent study aims to challenge the idea that cannabis is good for sleeping and believes it found reasons to doubt assumptions.
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What the Study Claims
CNN reported on the study, stating that, “Use of weed may actually harm sleep, a new study has found. The research, published Monday in a BMJ journal, revealed adults who use weed 20 or more days during the last month were 64% more likely to sleep less than six hours a night and 76% more likely to sleep longer than nine hours a night. Optimal sleep for adults is defined by the US Centers for Disease Control and Prevention as seven to eight hours a night.”
Basically, the study found that if people smoked more than 20 times per month (I know an arbitrary number) they were more likely to sleep more than eight hours at a rate of 47%.
The lead investigator Calvin Diep said, “Large population-based studies show that both short sleep and long sleep are associated with an increased risk of heart attacks and strokes, as well as the long-term progression of things like atherosclerosis, diabetes, coronary artery disease and any of the major cardiovascular diseases.”
While this may be true, unless they have tested the cannabis users for these conditions as well, then the information would by no means be causal. It might simply be a coincidence or there may be numerous other things that could cause the same results.
In fact, this is something that even the lead researcher, Calvin Diep, said.
“The problem with our study is that we can’t really say that it’s causal, meaning we can’t know for sure whether this was simply individuals who were having difficulty sleeping, and that’s why they use the cannabis or the cannabis caused it,” Diep told CNN.
CNN also interviewed another clinician-scientist, Dr. Karim Ladha, on these findings which he had the following to say:
“Studies tell us about what happens at a population level, but on an individual level that discussion is much more personal,” he said. “The studies just give us the possibilities that (marijuana) could hurt your sleep, but it may help and so we just don’t know until you try it.”
That’s why additional studies need to be done, he added.
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“Patients are spending money and time and resources to obtain cannabis right now to help with sleep,” Ladha said. “I think as the medical community, we need to do everything we can to make sure that we enable our patients to make the best possible decisions for their health.”
I agree with Ladha on this one, it’s the responsibility of the medical community to help inform people to make the best decisions for their health. These studies tend to do “generalized analysis” of the data and throw a wide net – however, this doesn’t mean that individually some people are actually benefiting from cannabis use.
Why Are They Publishing Unfinished Science?
Science is a process, and it’s important to keep a record of findings. However, it’s also important to note that CNN and many other media outlets have historically been against cannabis. Most of the time, cannabis is being reported on either ironically, sarcastically, or in a negative light. Only recently were news outlets forced to spin a different narrative.
If we look at funding of major networks, you’ll notice a large chunk of it comes from pharmaceutical companies – who happen to sell drugs to help you fall asleep. The difference being that one of the drugs you can grow at home while the other must be exclusively purchased by a licensed physician that also makes some nice profits on prescribing their drugs.
Does this mean we should ignore the study? I can’t say that the study was funded by pharma mainly because I haven’t gone and looked at the funding. However, I can definitely say that CNN receives money from the pharmaceutical industry and, as a result, may have some serious bias when it comes to reporting on the negative effects of cannabis.
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After all, it was only through media networks that prohibition could have lasted so long. They help frame the narrative for the government.
I wouldn’t have a problem if they published these findings in an unbiased light, however, the CNN headline doesn’t indicate that there is no causal relationship in the findings. It makes you believe that smoking cannabis will impact your sleep, especially if you smoke more than 20 times in a single month.
Really? Twenty times? Is that dabs? Joints? Vaping? Edibles? What about the potency? How soon before going to sleep did the users consume cannabis? Or are we simply going to use the ambiguity of the statement as a means of claiming there was any due diligence involved in this study?
While this study will certainly be cited by some anti-cannabis organization in the future, the fact of the matter is that this study was created for the purpose of building a narrative. Which is a shame. They should be doing legitimate studies on these kinds of things.
There would be zero ethical consequences to doing clinical trials with cannabis from dispensaries compared to a control group. Especially, in places such as Canada.
The cannabis industry has been unbanked and underserved for years, often resulting in adverse impacts on public safety in communities where cannabis is legal.
On Monday, New Mexico Attorney General Hector Balderas announced that New Mexico-based U.S. Eagle Federal Credit Union is the first financial institution in the country to become certified for outstanding U.S. monetary banking protocols in banking cannabis and hemp operation.
The certification is part of a financial services certification program run by the Policy Center for Public Health & Safety in collaboration with state attorneys general as well as a broader certification effort being implemented by ASTM international and PH&S.
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“The marijuana industry will soon be exploding in New Mexico, and it is important to have banking safeguards to mitigate illicit and criminal conduct, Balderas said. “This is an important first step in partnering with legally compliant businesses in the marketplace.”
Endorsed by Safe Harbor Financial, a subsidiary of Partner Colorado Credit Union,the certification brings banking and financial transparency to ensure the safety of the monetary system for institutions banking hemp and cannabis.
Marsha Majors, president and CEO of U.S. Eagle Federal Credit Union, emphasized that credit unions “were chartered to serve the unbanked and underserved population.
“The cannabis industry has been unbanked and underserved for years, often resulting in adverse impacts on public safety in communities where cannabis is legal,” Majors added.
State and federal agencies accept the overall certification model as the standard of compliance and in implementing general risk mitigating strategies.
The highest level of compliance standards, which will meet the expectations of BSA and FinCEN Guidelines.
Mainstream depository options for cannabis-related entities, including both plant-touching and ancillary service providers, ensure accountability, transparency and reporting of the industry.
Monitoring of internal activities of all personnel involved in the compliance program to ensure full compliance with processes that will protect U.S. Eagle.
Monitoring cannabis clients to ensure they are internally prepared to prevent or implicate any enforcement priorities previously recorded in the Cole Memo and still referenced in the Financial Crimes Enforcement Network (FinCEN) Guidelines.
Creating a transparent environment of all activities with examiners, auditors, and other third parties that work with the financial institutions to build comfort and understanding, ultimately improving processes in the long term.
Joining a network of cannabis banking financial institutions that share and develop best practices surrounding cannabis banking and using this shared network to assist each other with safety and soundness.
Digitizing financial transactions to the highest level possible to increase transparency.
Ensuring records are thorough, easily navigated, and readily available to fulfill law enforcement demands such as subpoenas, inquiries.
Malta is poised to become the first country in Europe to legalize the cultivation and possession of cannabis for personal use.
The first country? What about the Netherlands?
While the Netherlands, and especially Amsterdam, is most commonly associated with cannabis consumption in Europe, marijuana possession and trade are technically illegal there although the Dutch government’s relaxed attitude is well-known.
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Proposed Rules In Malta
Under Malta’s proposed bill, possession of up to 7g of cannabis, home cultivation of up to four plants and storing up to 50g of dried marijuana will be legally permitted for those aged 18 and above. Those found in possession of up to 28 grams, on the other hand, will be obliged to pay a €50-€100 fine but will not be subjected to a criminal record.
The underaged found in possession will not be arrested but will be obliged to go before a justice commission for a recommended care plan. Consuming weed around children is punishable by a €300-€500 fine.
The legislation was approved by Malta’s Parliament on Tuesday and is expected to soon be signed into law by the president.
Owen Bonnici, the minister responsible for the program, told the Guardian that the Maltese government does not want to encourage the use of drugs, but that there’s no scientific proof that marijuana usage leads to abuse of more dangerous substances.
“There is a wave of understanding now that the hard-fist approach against cannabis users was disproportionate, unjust and it was rendering a lot of suffering to people who are leading exemplary lives,” Bonnici said. “But the fact that they make use on a personal basis of cannabis is putting them in the jaws of criminality.”
“I’m very glad that Malta will be the first country which will put words in statute in a comprehensive manner with a regulatory authority,” he added.
Recent Cannabis Reforms In Europe
It looks like the cannabis reform wave is starting across Europe, a move that was inspired last December when the United Nations Commission on Narcotic Drugs made a final decision to remove cannabis from Schedule IV of the 1961 Single Convention on Narcotic Drugs.
It is widely known that cannabis has many medicinal benefits, with managing chronic pain, epilepsy, anxiety and treating the symptoms of PTSD among them. But should you be mixing cannabis and prescription drugs?
However, in the case of cannabinoids, a group of substances found in the cannabis plant, there is a risk that combining it with other prescription drugs could pose harmful drug-drug interactions, suggests new research undertaken by scientists at Washington State University (WSU).
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The researchers looked at cannabinoids and their major metabolites found in cannabis users’ blood and found that they interfere with two families of enzymes that help metabolize a wide range of drugs prescribed for a variety of conditions. As a result, either the drugs’ positive effects might decrease or their negative effects might increase with too much building up in the body, causing unintended side effects such as toxicity or accidental overdose.
The findings examined the interaction between three of the most abundant cannabinoids – tetrahydrocannabinol (THC), cannabidiol (CBD), and cannabinol (CBN).
While more research is essential, the authors suggested that caution should be taken when using cannabis with prescription drugs.
“Physicians need to be aware of the possibility of toxicity or lack of response when patients are using cannabinoids,” said Philip Lazarus, senior author on the paper and Boeing distinguished professor of pharmaceutical sciences. “It’s one thing if you’re young and healthy and smoke cannabis once in a while, but for older people who are using medications, taking CBD or medicinal marijuana may negatively impact their treatment.”
Lazarus added, “It’s one thing if you’re young and healthy and smoke cannabis once in a while, but for older people who are using medications, taking CBD or medicinal marijuana may negatively impact their treatment.”
The Findings
Researchers used manipulated human kidney cells and confirmed their results in human liver and kidney specimens in which enzymes were present.
Shamema Nasrin, a graduate student in the WSU College of Pharmacy and Pharmaceutical Sciences, emphasized that even though cannabinoids stay in the consumer’s body for roughly 30 minutes prior to being rapidly broken down, the metabolites that result from that process could remain in the system up to 14 days.
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Moreover, metabolites are also found “at higher concentrations than cannabinoids,” she further explained, adding that they have been “overlooked in previous studies.”
Potential negative drug interactions include a decrease of the drugs’ positive effects, as well as an increase in its negative effects resulting in the excessive build-up in the body that could cause unintended side effects such as toxicity or accidental overdose.
“Taking CBD or marijuana might help your pain but could be making the other drug you’re taking more toxic, and that increase in toxicity may mean that you can’t continue taking that drug,” Nasrin said. “So, there could be serious ramifications for anti-cancer drugs, and that’s only one example of the many drugs that could potentially be affected by the cannabinoid-enzyme interactions we’re seeing.”
Don’t let flu season keep you from sharing your stash. There are safe ways of enjoying cannabis with loved ones this season without getting sick.
Making it through the pandemic without contracting COVID only to end up with the flu is a nightmare for millions of Americans as flu season gets underway. The risk of contracting the flu is even higher for cannabis enthusiasts who are eager to get back to their old ways of passing weed to their friends.
Nothing is worse than having the flu while everyone else is doing something fun. Here are tops for safely sharing weed during flu season.
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Sharing Edibles
A great alternative to traditional methods of sharing weed with friends could be baking and sharing edibles together. There are numerous edible recipes that are easy to make and taste delicious. Making edibles could serve as a great way to catch up and enjoy each other’s company before getting baked yourself. The fact that sharing edibles is likely the best way to enjoy cannabis together without potentially getting each other sick is an added bonus.
Consider Using Personal Paraphernalia
It’s no secret that germs can be easily exchanged by sharing pipes, bongs and bubblers. That’s why during flu season, it’s likely a good idea to stick to using personal pieces even when smoking with friends. Fortunately, there are numerous pieces that are portable. This method is particularly fun when everyone has a different strain of their own to bring to the party that allows each person to try a new strain while using their own preferred piece. Additionally, smoking marijuana from pipes allows the weed to last a bit longer than rolling it, which means longer, more enjoyable sessions with your friends!
Similar to using personal paraphernalia, personal vaporizers can be an effective alternative to passing around the same bong or blunt. A lot of vaporizers on the market nowadays come with 2-in-1 capabilities that allow users to consume both concentrates and dry herb with them. This allows you to get together with friends and enjoy the sensations both concentrates and dry herb marijuana offer without the risk of passing the flu or other contagious illnesses. Another benefit of using vaporizers as an alternative to passing a bong or a blunt is that vaping can provide a different high which allows consumers to get a better taste of the strain they’re consuming.
Sometimes, nothing hits the spot like a puff of a tightly-rolled joint. Sharing a joint with friends without the risk of passing along a flu or cold is difficult, but that’s where knowing how to roll a double-crutch joint comes in handy. Rolling one is simple. All it takes is rolling one up the way you normally would, then cutting it in half. Just pass the other half to whoever it is you’re smoking with and suddenly you’re sharing the same joint! Even though it’ll likely take some getting used to, smoking a double-crutch joint is the ideal way to share the satisfaction of a joint with a friend without sharing the risk of getting sick.
Your body itself can affect how long you stay high. The speed of your metabolism, your height and weight and even your sex can affect how THC is absorbed into your system.
If you have ever gotten high and suddenly realized you have an important obligation looming in the near future, you probably asked yourself, “how long am I going to be high?” On the other hand, you may have a long plane ride ahead of you and are seeking a way to ensure you have a prolonged relaxed journey with the help of some THC.
“A cannabis high can last anywhere from two to 10 hours, depending on a range of factors,” according to Healthline.This is quite a broad time frame. There are, however, specific factors within your control that can affect how quickly you will get high and how long it will last.
Consumption Method
One major player in how long you stay high is the method you use to consume THC. The way you get high not only affects how quickly you feel the THC, but it helps determine the duration of your high as well.
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Smoking And Vaping
Smoking and vaping are two of the most popular methods of getting high. In addition to convenience, smoking and vaping tend to be a preferred method because the effects are often felt very quickly after consumption.
When you smoke or vape weed, you typically feel the strongest effects within 10 minutes of consumption. These effects will last, on average, from one to three hours depending on other factors. In some cases, the high can last a much longer time, or perhaps a slightly shorter amount of time.
Edibles
Your body ingests THC differently when you eat it rather than smoke or vape it. Just like with other medications, your body may react to eating weed differently on an empty stomach versus a full one. Regardless of how much you consumed, the high will take longer to begin than if you smoked it, but will typically last much longer.
“When you smoke THC, it immediately goes into your bloodstream, whereas you might not feel the full effect of THC you’ve consumed until hours later,” Andrew Stolbach, an emergency physician and medical toxicologist at Johns Hopkins Hospital in Baltimore, told EatingWell.
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On average, when you eat an edible you will feel the peak effects about two hours after consumption. The high can last much longer than smoking it, in some cases it may last the entire day.
Dabbing
Dabbing can yield a similar timeframe to smoking or vaping. Since you smoke a dab, it goes into your bloodstream almost instantly. This means you feel the effects very quickly.
If the dab contains highly concentrated THC, however, your high is likely to last significantly longer than if you smoked a joint. For this reason and others, it is imperative you know exactly what is in the THC products you consume.
Quality And Quantity
Just as how you consume THC affects how long you stay high, knowing what and exactly how much of it you consume can be just as instrumental in determining the duration of your high.
How Much Did You Consume?
It is commonly understood that the more weed you consume the higher you will become. This is certainly true, but weight and quantity are not always the same thing. In fact, many growers are making increasingly potent strains of marijuana. This means you can be consuming a large quantity of THC just by smoking a single joint.
One great benefit that accompanied the birth of legal cannabis dispensaries is that ability to enlist the use portion control. Dispensaries often include the amount of THC in their products, including vape cartridges and edibles.
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Know The Product
No matter which method you use to ingest THC — or how much you ingest, for that matter — it is critical you know what you are putting into your system.
“Cannabis growers have been increasing the THC content in their plants over recent years, causing the leaves to trigger a more potent high,” according to Medical News Today.
Different strains and consumption methods affect people differently. Knowing the exact product you plan to consume is important when you want to know how long you will stay high. “Weed is stronger in the forms of sinsemilla and hashish than in other strains, as they contain high THC levels,” reports Medical News Today. “Because of this, they are likely to create longer highs.”
Tolerance Levels And Your Body
If you use cannabis regularly your body will develop a tolerance over time. Just like with most substances humans consume, if you consume THC regularly it may take more and more to achieve the same effects. Generally, if you rarely consume marijuana you will stay high longer than someone who consumed the same amount and has a high tolerance to THC.
Your body itself can affect how long you stay high. The speed of your metabolism, your height and weight and even your sex can affect how THC is absorbed into your system.
In order to determine how long your high will last, start by consuming smaller doses and monitoring the effects. Remember, everyone reacts to THC differently. Still, if you are careful to use products and methods you can both monitor and control, you can start to know exactly how long your high will last.
There’s a popular belief that holding in a cannabis hit will get you higher. Here’s what actually happens.
There’s a lot of misconceptions regarding cannabis use. One of the most popular beliefs among amateur and seasoned cannabis users is that the longer a hit is held in the lungs, the stronger the effect. This is not true, although holding in your breath for long periods of time might make you feel as if you were higher.
Why are these beliefs so popular? Here’s an explanation of how your lungs work once cannabis is introduced.
How Your Lungs Work
Whether you’re inhaling smoke from a joint, a pipe, or a bong, your lungs react in the same way as when you’re breathing. Lungs expand and pick up oxygen. In the case of breathing in cannabis, they pick up on THC and deliver it to your alveoli (the little sacs of air in your lungs). The THC is then passed on to your bloodstream, where it will be delivered to different areas of the body, getting you high in the process. It’s a relatively quick succession of events, resulting in people feeling high within minutes.
When it comes to how long you hold in the THC or how much you cough, the effect remains the same. It takes approximately 3 seconds for the THC to make its way through your body.
Why You Feel Lightheaded
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While you’re not making the cannabis affect you more by holding in the smoke, you are depriving your brain of oxygen and accelerating your heart rate. This process will make you feel lightheaded, which might contribute to feeling higher, at least for a couple of seconds as your body takes a minute to rebalance itself. Still, holding in your breath is not an effective way of getting more high.
If you’re interested in finding a more efficient way to get high, there are several things you could try. A new method of cannabis, whether that’s an edible or smoking from a vape or a bong, might kickstart your body’s relationship with the drug, getting you higher in the meantime. You can also try adding some kief to your joints or bowl, adding more trichomes in the mix, and producing stronger experiences.
Pharmaceutical giant Pfizer Inc. is entering the cannabis space via the $6.7 billion acquisition of Arena Pharmaceuticals, Inc. The two publicly-traded companies confirmed Monday that they have signed a definitive agreement under which Pfizer will acquire all outstanding shares of Arena for $100 per share in an all-cash transaction.
Pfizer expects to finance the transaction with existing cash on hand upon obtaining all necessary approvals.
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Arena Pharmaceuticals, based in San Diego, Cal., is a biotech company with one segment of its drug pipeline dedicated to cannabinoid-type therapeutics. The core of its cannabis biotech operations is the research and development of its investigational drug candidate called Olorinab. This is an oral full agonist of the cannabinoid receptor 2 that is being researched for the treatment of various symptoms, mainly concentrated on visceral pain connected with gastrointestinal illnesses.
Other parts of Arena’s drug pipeline are concentrated on non-cannabinoid drugs with the main focus on developing innovative potential therapies for the treatment of several immuno-inflammatory diseases. Arena’s portfolio includes diverse and promising development-stage therapeutic candidates in gastroenterology, dermatology and cardiology.
“The proposed acquisition of Arena complements our capabilities and expertise in Inflammation and Immunology, a Pfizer innovation engine developing potential therapies for patients with debilitating immuno-inflammatory diseases with a need for more effective treatment options,” stated Mike Gladstone, global president & general manager, Pfizer Inflammation and Immunology. “Utilizing Pfizer’s leading research and global development capabilities, we plan to accelerate the clinical development of etrasimod for patients with immuno-inflammatory diseases.” Etrasimod is Arena’s drug candidate for the treatment of immune-mediated and inflammatory diseases.
Amit D. Munshi, president and CEO of Arena said they are thrilled to be acquired by Pfizer, which recognized “Arena’s potentially best in class S1P molecule and our contribution to addressing unmet needs in immune-mediated inflammatory diseases. Pfizer’s capabilities will accelerate our mission to deliver our important medicines to patients. We believe this transaction represents the best next step for both patients and shareholders.”
Big Pharma Entering Cannabis Space
This is not the first time one of the largest pharmaceuticals companies in the world has obtained an interest in a cannabis-related company. In February 2021, Jazz Pharmaceuticals bought cannabinoid drug company GW Pharmaceuticals, known for developing Epidiolex, the first FDA-authorized CBD medicine for treating children with severe forms of epilepsy. The medicine was first approved for the treatment of seizures connected to Lennox-Gastaut syndrome and Dravet syndrome, and last July for treating seizures related to tuberous sclerosis complex. Epidiolex sales generated more than $500 million last year.
In 2018, Canadian cannabis giant Tilray entered a supply and distribution agreement with medical marijuana with pharmaceutical giant Novartis AG.
Another big pharma company that dipped its toes into cannabis was Johnson & Johnson when, in 2017, it accepted cannabis company Avicanna into its Innovation JLABS@Toronto — a 40,000-square-foot life science innovation center located in MaRS Discovery District. The labs provide a flexible environment for startup companies pursuing new technologies and research platforms to advance medical care, without Johnson & Johnson taking an equity stake in these companies.
The company is “aware of a scheme” in which retailers are utilizing cashless ATMs to avoid limitations on the types of sales for which payment cards are allowed to be used.
The burgeoning recreational marijuana industry — illegal at the federal level yet legal for adults in some 18 U.S. states and DC — has faced multiple challenges throughout the years, mostly because of the Schedule 1 status of the cannabis plant.
The biggest problem? Banking, of course.
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As in life, retailers have had to find a way to work around the system. Some cannabis merchants have begun using cashless ATMs to bypass limitations on the types of sales payment cards they can legally accept.
One of the largest payment processors in the world, Visa Inc., recently issued a compliance memo to customers warning them that incorrectly coding point-of-sale transactions via cashless ATMs could be penalized or punished by unspecified enforcement procedure, reported Marijuana Moment.
Visa’s warning comes on the heels of the marijuana banking reform bill that was recently chopped from Congress’ defense bill. Thelatest version of the Congressional defense bill left out several key provisions that were in the House-approved National Defense Authorization Act (NDAA), including the much-anticipated marijuana banking reform known as the Secure and Fair Enforcement (SAFE) Banking Act, which would protect banking and financial institutions that work with state-legal cannabis companies.
Aware Of A Scheme
Visa’s memo from Dec. 2 obtained by Marijuana Moment revealed that the company is “aware of a scheme” in which retailers are utilizing cashless ATMs to avoid limitations on the types of sales for which payment cards are allowed to be used.
“Cashless ATMs are POS [point of sale] devices driven by payment applications that mimic standalone ATMs. However, no cash disbursements are made to cardholders,” the memo clarified. “Instead, the devices are used for purchase transactions, which are miscoded as ATM cash disbursements. Purchase amounts are often rounded up to create the appearance of a cash disbursement.”
Although the Visa directive does not specifically mention cannabis, it highlights that cashless ATMs (also called reverse ATMs) “are primarily marketed to merchant types that are unable to obtain payment services—whether due to the Visa Rules, the rules of other networks, or legal or regulatory prohibitions,” a category that covers marijuana businesses.
Nathaniel Gurien, CEO of Fincann, which provides financial services to cannabis businesses, estimates that thousands of marijuana retailers in the U.S. rely on this scheme.
A Desperate Move With Catastrophic Potential
“What keeps me up at night is that when, not if one or more eager assistant U.S. attorneys with their eye on advancement sinks their teeth into this, it has the catastrophic potential to derail our industry’s momentum and inflict great damage,” Gurien told the outlet.
While it remains clear that marijuana retailers are in an untenable situation – having no access to banking services – they should be aware that relying on the use of cashless ATMs can endanger their operations.
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Corporate and banking compliance lawyer Kasim Carbide noted that violating Visa’s regulations “may result in a disciplinary action against the Merchant, as well as a potential fine of $200,000 or $2,500 per day (which can be retroactively applied [sic] to and from the first day of noncompliance), and termination of the Merchant’s account.”
What’s more, according to the Chicago Bar Association, miscoding cannabis sales is not only a violation of payment processors’ (in this case Visa’s) policies but a“violation of federal law as well.”
Confused Yet?
To exacerbate an already complicated situation, Jessica Billingsley, CEO of cannabis technology company Akerna, pointed out that there are probably many businesses that are unaware that cashless ATM practice is illegal.
“With the number of unique complexities and challenges the cannabis industry faces, many operators don’t understand that they have been sold misrepresented products that may not be legal,” Billingsley said in a statement. “The work of a few bad actors cannot undermine the important legal work the majority of ancillary providers have been doing.”
Many cannabis advocates reacted to Visa’s statement, arguing that such a large company should support marijuana retailers instead of placing obstacles in their paths.
“It is unfortunate that Visa is unwilling to work with the cannabis industry, which is legal in dozens of states and represents billions of dollars in economic activity, at a time when this country needs all the financial options it can use,” said Morgan Fox, media relations director for the National Cannabis Industry Association. “But it is even worse that they are trying to discourage alternative solutions that are primarily utilized by small businesses to protect themselves and their customers from theft and violent crime.”
