If you haven’t heard about the issues surrounding cannabis banking, then it’s time to get familiar. Despite being legal in some form in over 25 states, federal law still makes it hard for banks to accept money from the industry. According to federal law Marijuana is still a schedule I prohibited drug. Other drugs in this category are heroin, cocaine and LSD. Any federal bank that does business with cannabis growers, distributors or dispensaries are subject to penalization for money laundering under federal law. Taxes surrounding cannabis sales and cannabis banking even have to be paid in cash, making it hard for businesses to do their taxes correctly.
The cannabis industry brought nearly US $9 billion in revenue in 2017, so where is all of this money being stored? In the past, a lot of the money had to be stored in cash in safes. Today a variety of cannabis banking services are popping up around the country. Services such as FINCANN aim to provide a safe, trustworthy way for cannabis companies to bank until federal law catches up. The cannabis banking service launched in January of this year.
FINCANN connects cannabis related businesses with banks that will accept them as account holders by doing a lot of the hard work for them. The company does the networking and presenting needed to convince various banks around the country that allowing cannabis companies to use their service is a good idea. Through FINCANN, cannabis banking becomes centralized and easily accessible. The service also provides merchant processing to its clients. Meaning that customers are able to make card transactions when purchasing product.
The Future of Cannabis Banking
FINCANN’s answer to the cannabis banking problem was sparked by its CEO, Nathan Gurien. He realized that the cannabis banking issue posed a major opportunity for lucrative investment. Nathaniel Gurien took out the major task that small businesses have to face in searching for a bank themselves. He created a comprehensive network of banks around the country that offered banking services to the cannabis industry. FINCANN also offers ways to facilitate cash deposits into bank accounts. This makes it easier and safer for cannabis businesses to bank locally.
The future of cannabis banking is still uncertain at this point. But the rapid growth of the industry shows that innovation is coming, and soon. Companies like FINCANN are the foreseeable future for the cannabis industry. We probably won’t see many banks jumping into the cannabis industry until the federal law can catch up. But federally legal cannabis isn’t too far-fetched of a dream.
Julia Sachs is a staff writer at Grit Daily. She covers tech, entrepreneurship and entertainment news and is based in Park City, Utah.