Mounting Support for Marijuana Banking Has Widespread Implications
January 18 2017 - 8:30AM
InvestorWire
New York, New York (NetworkNewsWire) – Although 28 states have
already legalized marijuana for medicinal or recreational use, the
U.S. Drug Enforcement Administration (DEA) continues to label
marijuana a Schedule 1 substance, along with heroin and LSD, making
it illegal on a federal level. As a result, the banking industry
has been slow to provide services to marijuana businesses, forcing
many of these companies to operate on a cash-only basis. A
"bankable" marijuana industry, however, would have widespread
implications, including for companies like Singlepoint, Inc. (OTC: SING),
Terra Tech Corp. (OTCQX: TRTC), OWC
Pharmaceutical Research Corp. (OTCQB: OWCP),
ChineseInvestors.com, Inc. (OTCQB: CIIX).
Cash transaction businesses are a tempting target for thieves,
and the lack of oversight at times leads to lost tax revenue. It's
a situation that Senator Elizabeth Warren, a member of the Senate
Banking Committee, is anxious to change. As the Associated Press initially reported, Warren and nine
other senators have called upon the Financial Crimes Enforcement
Network to issue new and stronger guidance allowing banks to
provide services to marijuana shop vendors. The moves are a
significant encouragement to payment processors supporting the
cannabis industry, as well as other industry players.
One of the supporters is Singlepoint,
Inc. (OTC: SING), a mobile technology and payments
provider, which, through its "SingleSeed"
Payments subsidiary, provides payment solutions for the cannabis
industry. Its mobile marketing and payment solutions include
cashless ATM, Pay-by-Text™ and text message marketing. The company
is strongly encouraged by the efforts of Senator Warren and others
on Capitol Hill, and the significant positive changes they could
bring.
Another company that stands to gain with this new market
opportunity is ChineseInvestors.com, Inc. (CIIX)
ChineseInvestors.com, a company that provides investor
information to the global Chinese community, and also offers a
unique link to this community for growing businesses. The company
recently announced plans to launch the "world's first Cannabidiol
(CBD) health products online store in the Chinese language,"
through an agreement with a "well-known" CBD health brand.
Other cannabis-related companies in line to benefit from
mounting support of a bankable marijuana industry include
Terra Tech Corp. (TRTC). Through its subsidiaries,
Terra Tech provides a range of hydroponic equipment for indoor
cultivation of cannabis products. In addition, the company sells
hydroponic cannabis produce and associated products. Another is
OWC Pharmaceutical Research Corp. (OWCP), an
Israeli company that develops cannabis products for the treatment
of diseases, also offering consulting services in the industry.
Previous guidance efforts by the U.S. Department of the Treasury
gave banks only limited permission to work with legal marijuana
businesses. Along with the DEA's Schedule 1 listing, it has created
a significant gap between state and federal treatment of marijuana.
Even though the number of financial institutions willing to provide
services to marijuana businesses has grown significantly in recent
years, only a small percentage currently serve the industry. It's
still an area dominated by small state-chartered banks and credit
unions.
Supporters however see an inevitable day, through efforts such
as those now being led by Senator Warren, when large national banks
like Wells Fargo offer comprehensive services to the cannabis
industry, further spurring already rapid industry growth.
For more information, please visit: Singlepoint, Inc. (SING)
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