SAFE Banking Act 2019: How Will It Change the Fate of the Cannabis Industry - Cannabis

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safe banking act

SAFE Banking Act 2019: How Will It Change the Fate of the Cannabis Industry

The House of Representatives passed The ‘SAFE Banking Act 2019’ recently validating the existence of the marijuana industry in the financial sector. Until now, several roadblocks held the cannabis industry from thriving. Especially, under the current federal law that restricted the canna-businessmen from expanding their business. Because doing business with the canna-industry meant that you are breaking the money laundering laws.

Therefore imperial laws forced people to carry barrels of cash instead of using an effective banking system. 

Now that the cannabis companies are on the verge of obtaining support from the National banks, it has become necessary to create a safe banking operating system. But before we talk about the nuances of this act let’s first understand what is the SAFE Banking Act?

What is the SAFE Banking ACT 

safe banking act 2019

The Secure and Fair Enforcement Banking Act was first introduced in the year 2017 and it was designed to see-through the current illegal status of cannabis. The act was reintroduced in April 2019 after it went through several amendments. The act hereby states that this million-dollar industry should work in tandem with the federal banking regulations.

In turn, the regulators will not limit the share or deposit because it will be a business tie-up and financial aid to cannabis companies will flow without superior restrictions. 

It will not be wrong to say that the SAFE Banking Act 2019 is regulating the illegal cannabis industry and forming a safe passage for the legal companies. The revised bill also provides protection to the supporting companies that offer their services or products to legal cannabis businesses.

Besides support to the industry, this act also keeps the functioning of the banking authorities in check. So as to make sure that the banks are only related to legitimate businesses. 

Having said that, let’s take a look at the current scenario. Representatives passed the law with a majority of votes to support the $11 billion industry. It is a good sign for the cannabis industry. So, by allowing the cannabis industry to enter the banking world, this act will definitely change the face of the marijuana business. But how? Let’s read below and find out. 

Will the Act Change the Face of the Cannabis Industry?

safe banking act 2019

First, we need to understand that the illegal cannabis industry is thriving because there are several loopholes in the current California marijuana laws and cannabis laws in other states too. The lack of banking services force some of the business owners to deal with cash. As a result of which tax evasion occurs. Not only this but also the authorities find it difficult to police illegal activities. However, the SAFE Banking Act will initiate a safer path for both the owner and the industry.

All the canna-businessmen will operate under a protected banking system. So, it is safe to say that the act will definitely change the face of the marijuana industry

Moreover, the good news will not last long because there are two main roadblocks in the way. First, Senate Leader Mitch McConnell and the second well-known drug policy activists. The former has not given any indications as to whether or not the bill will pass in the upper chamber. Plus his twisted relations with the Democrats make the process even more difficult.

Talking about the activists – they were hugely disappointed with the move because the bill does not cater to the needs of individuals facing marijuana prohibition. Instead, it is only supporting the industrial aspect of the cannabis world. 

Summing it Up

The Safe Banking update has come as a silver lining for the people supporting the cannabis industry. But its effectiveness remains questionable until the final verdict comes from the Senate. Currently, the bill lies in the upper chamber but the fate of the bill is yet undecided. For now, it’s all applaud for the house representatives who took an initiative to pass the bill. 

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Tips for Starting Your Own Cannabis Business

6 Tips for Starting Your Own Cannabis Business

If you are planning on starting a cannabis business, you probably have spent a lot of time researching the pros and cons of starting this kind of business. You can, however, make sure you get the most out of your cannabis business by being more knowledgeable about how the market works before starting yours. If for instance, you are planning to specialize in full plant extract CBD oil, you need to know what it takes to start a cannabis business in that niche.

Here are tips to help you start a successful cannabis business:

Create A Unique Idea

When starting a cannabis business, come up with a unique idea. Doing that enables you to stand out since there are other similar businesses in the market. There are different sectors in the marijuana industry. So, deciding on the specific sector you want to specialize in is vital.

You might see medical marijuana dispensaries making a lot of money and feel encouraged to start such a business. However, what you might not know is that a dispensary can be the riskiest marijuana business you can choose. As marijuana use continues to be legal across the US, its prices will go down eventually, which will leave people with dispensaries and grow-ops, making little profit.

Different marijuana businesses require varying requirements to start. For example, if you want to start a dispensary, you might need to have at least one million dollars capital only. You’re supposed to raise the money without the help of a loan, same as starting other cannabis businesses. The amount of capital needed to start one marijuana business varies from the other. Therefore, taking the time to come up with the idea you can afford to make it work is crucial.

Make Sure You Understand Your Customer Base

Make Sure You Understand Your Customer Base

Once you decide on the business idea you consider perfect for you, it’s crucial that you know what type of people can be interested in your services or products. You also need to understand their specific needs and wants as it makes targeting easier and more successful.

You need to do enough market research. It helps you to make sure your customers are always happy with your services since you already know what they want. If for instance, you deal in budget buds, you need to make sure you provide them with the best quality they’ve come across in the market. By doing that, you will get a broad customer base with little worry about the competition in the market. You can also start a business related to Cannabis but not exactly selling cannabis. You can deal in selling vaporizers or you can put glass bongs for sale. These could be the businesses interrelated to cannabis.

Know the Existing Rules and Ensure You Follow Them

It doesn’t matter whether you have the most brilliant business plan, enough funding, and a broad customer base, if you don’t follow the law, your business will be shut down. Breaking the set rules can leave you in hefty fines, and you can even face imprisonment, which affects your business.

The set rules and regulations for starting your own cannabis business are extremely complex and confusing. That shouldn’t scare you though, as you can hire a professional and experienced attorney to help you get through the beginning process safe and sound and also make sure that your business acts within the law.

Make Sure You Have Enough Capital

Make Sure You Have Enough Capital

When starting your cannabis business, you need to have enough investment capital. Most investors wouldn’t agree to put their money in cannabis businesses, especially in states where marijuana isn’t legal yet. Some banks are also not a go-to option as they have strict lending measures. Therefore, you need to look for the right private investors. While many investors are skeptical about investing in a marijuana business, there are even more who can be excited to invest in your idea.

Marijuana businesses are growing fast, which means that they are making a lot of money for people who already own such ventures. You can, therefore, be sure that you can get a great investor to help you raise capital and get your sativa business running.



Now that you already have your business up and running, you need to make it known to your prospects. Some states prohibit marijuana ads hence making it hard to advertise. You, therefore, need to make sure that your ads are within the law to avoid trouble as you need to avoid being on the wrong, especially when your business is just new. It’s vital that you ensure you target your ads to your audience, in particular, to make sure you get the most out of your ads.

Work Extra Hard

The cannabis business can be lucrative, but that doesn’t happen automatically. There are other marijuana business dealing with budget buds and sativa same as you. You, therefore, need to work hard to be the go-to marijuana business as you stay within the set rules and regulations. You can start your mail order marijuana services along with opening a dispensary. That’ll help you increase your revenue and target more customers. Also, providing interesting cannabis based products like organic CBD gummies would help attract more customers.

A cannabis business can be really tough, especially when you’re just starting due to the amount of capital needed and legal requirements. However, if you take your time to follow the above tips to the latter, you can start a successful marijuana business without much hassle.

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Illegal Cannabis Thriving, Blow Expectations of Licensed Owners Even After California Legalized Cannabis

It has been little over a year since California legalized cannabis. But illegal business seems to thrive in the States of California. In turn, illegal businesses are cannibalizing the business of legal owners. The effect is to such an extent that some of the owners have been forced to shut down their business. It has become a major concern because the entire law stands infected, despite legalization. In the midst of perplexity, the authorities are ramming control over policies and illegal owners are selling cannabis under the religious veil.

The only reason why illegalization is flourishing is due to the fact that most of them are using “cannabis is legal” as a shield to protect their personal motives. Now the irony is that people who own a medical card, in the nearby future may have to pay extra for buying a single strain of medical marijuana. First, because they have to pay tax and second because at the end of the day revenue has to be generated for a business to grow.

The Role of Apps in Boosting Illegal Marijuana

With digitalization booming at the speed of light, each and everything is readily available online. All you have to do is install an app. Similar is the case for medical marijuana users. Apps make cannabis readily available. But often do they know the fact that both legal and illegal business owners, work through these apps.

There are thousands of unlawful activities that take place through apps, despite reframing policies like banning the sale of products containing THC and allowing users to shop through an in-house app feature. Therefore, the role of apps in selling legalized marijuana illegally is a confusing patchwork that needs amendments.

How Did the Illicit Activities Grow Despite The Fact That California Legalized Cannabis?

Often patients trying to alleviate hormonal imbalances or making efforts to strengthen immunity have been found using CBD. Now, these people look for various ways to consume medical marijuana. It could be in the form of cannabis-infused products or tinctures and vapers. So illicit activities have risen because it’s easier to trade concealed forms of cannabis than raw marijuana.

Having said this, it is also vital to know that the production of cannabis is more in California than other states. Naturally making California the largest producer of medical marijuana and a state that has more illicit activities than any other. In addition to these other reasons such as a limited number of dispensaries and 15 percent excise tax on cannabis sale, is leading to the growth of the black market.

But make sure you don’t fall into the web of illicit markets. Because once under the scrutiny of stringent laws, you will have to deal with jail time and other penalties.

Get a Medical Marijuana Card from a Certified Doctor

Normally, people do not want to stand in long queues or go through the cumbersome process of getting a medical marijuana card. Hence what do they do? They lean towards the easier way out. But imagine you are an insomniac. You have been desperately waiting for a natural sleep cycle to set in your biological system. Your friend suggests you take a particular strain. You have to travel the road less traveled.

The road less traveled here is getting a medical card online.  Now that Neither will you wait for long hours nor will you face any hassles. Now that California has legalized cannabis, all you have to do is register through a trusted website. Ensure that you have your medical documents in possession. Most vitally, make sure that you are being examined by a certified doctor. Also, you need to have a government ID proof and address proof (if you are residing in the same region) to buy legal medical marijuana.

As the usage of Cannabis increases so will it’s potential to infiltrate the system. Policies will have loopholes and some miscreants in the society will take its advantage. But an authorized cannabis card will help elevate the standards of legal marijuana sale. In entirety, it will be beneficial for all the legitimate business owners.

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