Legal Marihuana banking problems - solution, bitcoin

[Spendulus]

Just saw this...scary...

http://www.nytimes.com/2014/01/12/us/banks-say-no-to-marijuana-money-legal-or-not.html?_r=0

I understand how the complex mess of law and regulation could lead to this, but what's the solution?

Duhh...

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[dank]

In other news... banks say YES! to big pharma and drug cartel laundering operations.

[Wilikon]

A reminder: Banks Said Yes to Laundering Drug Money
http://www.bloomberg.com/news/2013-07-02/hsbc-judge-approves-1-9b-drug-money-laundering-accord.html

[Spendulus]

In other news... banks say YES! to big pharma and drug cartel laundering operations.

Yes, that's a curious dichotomy.  Real, we know that.

[Wilikon]

In other news... banks say YES! to big pharma and drug cartel laundering operations.

Yes, that's a curious dichotomy.  Real, we know that.

Maybe they will say yes to the Cartel in place in Colorado, but no to the small businesses.

I remember a bunch of jokers decided to put weed seeds around a police station (in a tropical region). It was funny to see their faces when none were paying attention to those weed but everybody knew how stupid they looked "fighting drugs"

Maybe someone should do the same everywhere around the banks. Might not work with all regions but...

[hilariousandco]

Just saw this...scary...

http://www.nytimes.com/2014/01/12/us/banks-say-no-to-marijuana-money-legal-or-not.html?_r=0

I understand how the complex mess of law and regulation could lead to this, but what's the solution?

Duhh...

Apparently they're already accepting Bitcoin in Colorado for this: http://www.cryptonews.biz/colorado-pot-shops-do-1-million-in-cash-or-bitcoin-on-first-day-of-business/

Bitcoin was made for things like this.

[Spendulus]

Just saw this...scary...

http://www.nytimes.com/2014/01/12/us/banks-say-no-to-marijuana-money-legal-or-not.html?_r=0

I understand how the complex mess of law and regulation could lead to this, but what's the solution?

Duhh...

Apparently they're already accepting Bitcoin in Colorado for this: http://www.cryptonews.biz/colorado-pot-shops-do-1-million-in-cash-or-bitcoin-on-first-day-of-business/

Bitcoin was made for things like this.

Well, yeah.  I mean, if I was a federally regulated bank in Colorado and my regs prevented me from doing business with the LEGAL pot seller, I'd RECOMMEND he do bitcoin...

[hilariousandco]

Just saw this...scary...

http://www.nytimes.com/2014/01/12/us/banks-say-no-to-marijuana-money-legal-or-not.html?_r=0

I understand how the complex mess of law and regulation could lead to this, but what's the solution?

Duhh...

Apparently they're already accepting Bitcoin in Colorado for this: http://www.cryptonews.biz/colorado-pot-shops-do-1-million-in-cash-or-bitcoin-on-first-day-of-business/

Bitcoin was made for things like this.

Well, yeah.  I mean, if I was a federally regulated bank in Colorado and my regs prevented me from doing business with the LEGAL pot seller, I'd RECOMMEND he do bitcoin...

Hopefully more of these businesses or dispensaries will also see the positives of accepting and dealing in Bitcoin. I think this could be an industry where Bitcoin can really blossom and bloom.

[Lewis2]

They should have installed proper financial support for this business before legalizing the trade, but indeed maybe good news for Bitcoin. But still a hassle for the shopkeeper.

[U1TRA_L0RD]

That is so awesome, Marijuana needs to be legalized instead of alcohol since there are more deaths for people using it and those around the user.

[guybrushthreepwood]

They should have installed proper financial support for this business before legalizing the trade, but indeed maybe good news for Bitcoin. But still a hassle for the shopkeeper.

But that would mean changing federal laws.

[countryfree]

This problem won't last. Legal grass is still very new, and the banking sector is always slow to adapt. When bankers will have a better vision of how much cash the legal grass business can bring, they will lobby Washington D.C. to let them accept those customers.

Meanwhile, business owners can still rent a safe deposit box.

[U1TRA_L0RD]

This problem won't last. Legal grass is still very new, and the banking sector is always slow to adapt. When bankers will have a better vision of how much cash the legal grass business can bring, they will lobby Washington D.C. to let them accept those customers.

Meanwhile, business owners can still rent a safe deposit box.

I think the banks are doing that to push them out of business.

[hilariousandco]

This problem won't last. Legal grass is still very new, and the banking sector is always slow to adapt. When bankers will have a better vision of how much cash the legal grass business can bring, they will lobby Washington D.C. to let them accept those customers.

Meanwhile, business owners can still rent a safe deposit box.

I think the banks are doing that to push them out of business.

It's not that, I'm sure the banks would love to take their money, but the federal government wont allow them to.

[Spendulus]

This problem won't last. Legal grass is still very new, and the banking sector is always slow to adapt. When bankers will have a better vision of how much cash the legal grass business can bring, they will lobby Washington D.C. to let them accept those customers.

Meanwhile, business owners can still rent a safe deposit box.

I think the banks are doing that to push them out of business.

It's not that, I'm sure the banks would love to take their money, but the federal government wont allow them to.

It is a maze of regulation, but I would have thought that the "federal banks" would not be able to take the money from this bunch, but that the "state banks" and the credit unions would be able to.

Apparently some recent power grab in regulation reached down to those levels.

[TECSHARE]

Most of the money laundering regulation is federal in nature hence resistance from even places within the state. Even if it is legal on a state level it puts then at legal risk on a federal level therefore they simply refuse to work with them.

[Lewis2]

They should have installed proper financial support for this business before legalizing the trade, but indeed maybe good news for Bitcoin. But still a hassle for the shopkeeper.

But that would mean changing federal laws.

I'm not from the US so I am not familiar with this state law - federal law system. I'm from the Netherlands where having weed in small amount is not illegal, buying is nor legal or illegal (grey area) but buying weed as a coffeeshop is illegal. This creates a backdoor system of supply to coffeeshops that comes with a lot of criminality. I believe in full legalization, with the laws to support or criminalization. Legalization has the benefit, tax income, less criminality, controllable quality of substance. (disclaimer: not a user myself)

[guybrushthreepwood]

They should have installed proper financial support for this business before legalizing the trade, but indeed maybe good news for Bitcoin. But still a hassle for the shopkeeper.

But that would mean changing federal laws.

I'm not from the US so I am not familiar with this state law - federal law system. I'm from the Netherlands where having weed in small amount is not illegal, buying is nor legal or illegal (grey area) but buying weed as a coffeeshop is illegal. This creates a backdoor system of supply to coffeeshops that comes with a lot of criminality. I believe in full legalization, with the laws to support or criminalization. Legalization has the benefit, tax income, less criminality, controllable quality of substance. (disclaimer: not a user myself)

Federal Law overrules state law. The Netherlands has a half-decent but contradictory policy, but it's better than most situations around the world and at least they don't lock people up for victimles scrimes.

[Spendulus]

They should have installed proper financial support for this business before legalizing the trade, but indeed maybe good news for Bitcoin. But still a hassle for the shopkeeper.

But that would mean changing federal laws.

I'm not from the US so I am not familiar with this state law - federal law system. ...

Try this on.  We've had and will continue to have cases where sheriffs (town or county) publicly announce that if any federal agents try to come into their area and arrest for (x, y,z) the sheriff will arrest the federal agent.

X,y,z have most commonly lately been one or another type of firearms law. 

But it wouldn't surprise me if it was weed.  Just announcing that would make the sheriff immensely popular and in reality, the federal agents would go somewhere else.

But this would not help the banks who are trying to stay in line with regulations.

[guybrushthreepwood]

They should have installed proper financial support for this business before legalizing the trade, but indeed maybe good news for Bitcoin. But still a hassle for the shopkeeper.

But that would mean changing federal laws.

I'm not from the US so I am not familiar with this state law - federal law system. ...

Try this on.  We've had and will continue to have cases where sheriffs (town or county) publicly announce that if any federal agents try to come into their area and arrest for (x, y,z) the sheriff will arrest the federal agent.

What? Really? Can they actually do that and have they ever had the balls to do it?