One problem of industries like crypto and cannabis going from gray to clear markets is whether or not banks and laws can catch up.
In the case of cannabis, companies have had to operate for years without access to regular banking, as a result of federal laws which make it a crime to facilitate money for people working in certain fields.
Grey Crypto and Cannabis Markets Being Brought Into Financial Mainstream
Crypto suffers the same problem. While some banks may actually feel threatened, many close crypto-related accounts and penalize crypto-related activity out of fear of government regulations.
An inadequate understanding of cryptos means that most banks won’t understand they are in fact more traceable, and therefore likely to be more compliant with regulations, than other instruments such as fiat cash.
However, in Colorado, the Office of Economic Development & International Trade is looking to change all that. The office is formally looking into creating a legalized banking infrastructure in Colorado for cannabis and cryptocurrency. The new framework will reportedly likely look like Wyoming‘s Special Purpose Depository Institutions.
Ultimately, providing a haven for both is akin to bringing the entire industry forward several years.
By enabling crypto markets to legally provide liquidity through having a formalized banking system, the government will also be helping crypto providers to help cannabis businesses.
Everybody wins, basically.
While some cryptocurrency believers may see it as a wasted opportunity — cryptocurrency has never really caught on for dispensaries and other areas of the cannabis industry which are forced to hoard massive amounts of cash — the bottom line is that bringing banking into the equation means other benefits for participants.
For example, dispensaries in Colorado, although not everywhere, may soon be able to accept debit and credit card transactions.
Colorado Lawmakers Want Action Now
While the news of the legislation’s drafting is just getting around now, the goal of its authors is to have actionable legislation in front of lawmakers by December.
This means that things could be incredibly different for both crypto and cannabis in Colorado come 2020.
Colorado has led the way in its cannabis regulations, being among the first to legalize it in several ways. Now it might find itself a hub for cryptocurrency, if it provides an easy-to-understand regulatory environemnt for crypto businesses.
It probably doesn’t hurt that the region is rife with potential targets for crypto-oriented businesses looking to help people own their cash in digital form.