Market Overview

Video: Banks Are Shutting Down Federally Legal Businesses Selling Hemp-Derived Products

Share:
Video: Banks Are Shutting Down Federally Legal Businesses Selling  Hemp-Derived Products
Read more about our latest Cannabis News! CANNABIS HOME

By Atlantic WeedBoard.

In exclusive interviews posted on Atlantic WeedBoard, legal hemp farmers and CDB business owners discuss how the lack of clear banking regulations hinders their ability to market products online to consumers across the country.  Under the 2018 Farm Bill, the farming and cultivation of hemp and hemp-derived CDB oil was declared federally legal in all 50 states.  However, Atlantic WeedBoard talks to farmers and business owners on how the lack of banking and financial regulations allowing them to accept credit card payment is preventing them from selling online to consumers. Several industry businesses speak with Atlantic WeedBoard Co-Founder Jason Goodman to present the current state of banking and how it is stifling sales and fair market trade, including:

Jack Jacobson, a Cannabis Banking Consultant, states “The lack of clear banking regulations is turning the burgeoning legal hemp industry with its growing consumer demand into a cash-only business. The amount of cash in the industry is staggering and creating a public safety risk.”

Allen Gandelman, Co-Founder of Head+Heal.com is an organic vegetable farmer in upstate New York. He obtained a permit from the state and became a hemp farmer and opened several banking accounts under his existing business. Six months later, the bank shut down all of his accounts, leaving him unable to sell online any hemp-derived products from his farm.

Maryam Henein, Co-Director of the award-winning documentary “Vanishing of the Bees” and Founder of Simply Transformative.com was one of the first businesses to offer CBD oil online to consumers.  Within two years her business was shut down by several banking platforms including Paypal, Square, Stripe, Quick Books and others, leaving her nowhere to turn. “This banking shutdown of credit card processing resulted in vendors not being paid, customers’ orders not being fulfilled and enormous charge backs resulting in a loss of $100,000.”

According to Jason Goodman, Co-Founder of Atlantic WeedBoard, there may be a light at the end of the tunnel for legal hemp businesses. “The American Banking Association (ABA) has sent a letter to the heads of the UNS financial regulatory agencies asking for more clarification on how banks can service hemp-derived businesses,” explains Goodman. “Senators Mitch McConnell (R. Kentucky) and Ron Wynden (D. Oregon) have also sent letters to four federal banking and finance institutions asking them to open financial services to the legal hemp industry.”

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Read more about our latest Cannabis News! CANNABIS HOME

Posted-In: Atlantic WeedBoardCannabis News Education Markets General Best of Benzinga

 

Related Articles

View Comments and Join the Discussion!

Cannabis Movers

Sign up for our secret cannabis newsletter!
Never miss out on the breaking news in the Cannabis Industry!

Trulieve: Availability Of Flower Boosted Florida's Medical Marijuana Market In Q2

Canopy Growth Investors Pull Back As Losses Widen In Q1; CBD Products Coming To US Market