[2014-01-14] BitPay Not Willing to Work with Marijuana Dispensaries

[DeathAndTaxes]

Obama administration clears banks to accept funds from legal marijuana dealers
http://www.washingtonpost.com/business/economy/obama-administration-clears-banks-to-accept-funds-from-legal-marijuana-dealers/2014/02/14/55127b04-9599-11e3-9616-d367fa6ea99b_story.html

Should pave the way for bitcoin payment processors.

The statement by the administration is a bunch of legal nothing.

Summarized.  "We won't prosecute you, but it is still illegal and at any point in the future for any reason we could suddenly and without warning decide to prosecute you.  Also there is no legal defense or safe harbor on actions you take now even if you decide to suspend them in the future if/when our policy changes."

How likely do you think banks (and companies like BitPay) will see this as the legal clarity they need to move forward?

[cr1776]

There was an article about it yesterday:

DENVER — Bankers should beware of the Obama administration’s newly issued green light for banks doing business with the legal marijuana industry, according to the head of the Colorado Bankers Association.

Memos released Friday by the Justice Department and Treasury Department’s Financial Crimes Enforcement Network were intended to give banks leeway to open accounts for marijuana businesses in states like Colorado and Washington that have legalized retail pot. Instead, the guidance “only reinforces and reiterates that banks can be prosecuted for providing accounts to marijuana related businesses,” said the CBA in a Friday statement.

 ...

http://p.washingtontimes.com/news/2014/feb/14/banks-warned-they-risk-prosecution-if-they-follow-/

[justusranvier]

BitPay also dropped Central Texas Gun Works on a few days ago.

That's a business that is fully legal at both the state and federal level so there's no gray area involved. It does show you how "regulatory soft power" works though. Something doesn't need to be illegal for it to generate regulatory problems for a business (or their bank).

[guybrushthreepwood]

BitPay also dropped Central Texas Gun Works on a few days ago.

That's a business that is fully legal at both the state and federal level so there's no gray area involved. It does show you how "regulatory soft power" works though. Something doesn't need to be illegal for it to generate regulatory problems for a business (or their bank).

They might have their own rules about who they work with, but the fear of being prosecuted is always there and they're probably not willing to take the risk with dispensaries.