Dispensaries, E-Commerce, and DEA Regulations
- Jeremy Garner
- Nov 10, 2020
- 2 min read
December 20, 2019
In 2018, the number of Dispensaries in Denver was more than triple the number of Starbucks and McDonald’s.
Colorado and Washingtion have a leg up on the other nine states and the District of Columbia that have legalized recreational marijuana use.
Massachusetts, for example, only has 25 recreational dispensaries in operation as of August 2019, which hints that the cannabis industry has not fully matured.
As the industry continues to mature, there will be growing pains like the cash problem and federal regulations.
Federally backed banks cannot do business with cannabis distributors as the product is illegal on a federal level.
“We have dispensary owners paying their employees with cash, paying their vendors, paying their electric bills, going to APS with thousands of dollars, paying their taxes with tens of thousands of dollars cash,” Tim Sultan of the Arizona Dispensaries Association said.
Having that much cash on hand, or in a bag can make many people nervous. The Denver Police Department released an informational bulletin in September with tips to help the marijuana business protect themselves.
Lots of cash in relatively unprotected buildings make dispensaries an easy target. That’s where companies like Global Payout come in.
Global Payout is a technology holding company looking to provide payment services to both low and high-risk merchants.
Vanessa Luna, the Global Payout CEO said, “I am regularly encouraged by the resiliency my team continues to demonstrate in navigating the many different challenges of providing sustainable financial services within the Cannabis industry.”
For the remainder of 2019 Global Payout plans to focus on banking, software developments, and system enhancements.
On a federal level, the Drug Enforcement Agency will be moving forward on revised regulations for growing marijuana for scientific research.
33 companies applied to become a registered marijuana supplier for DEA-registered researchers under the Controlled Substances Act.
GB Sciences received notification that after a three-year delay the DEA will be releasing their grower regulations.
Despite these pains, more dispensaries are opening nationwide every day. iAnthus Capital Holdings, a Florida based cannabis operation just announced their ninth dispensary to be opened in Bonita Springs, Florida.
"Florida has an exciting and rapidly growing market.” Hadley Ford, Chief Executive Officer of iAnthus said. “We've opened six locations in eight weeks and will continue expand both our dispensary footprint and our product offerings."
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