A business sector that was already operating on the periphery of the American financial system has suffered a hit as a result of Mastercard's directive to financial institutions to stop permitting marijuana transactions on its debit cards.
In spite of the fact that marijuana has been made legal for medicinal and recreational purposes in many states, the majority of banks in the US do not provide banking services to cannabis businesses.
"As we were made aware of this matter, we quickly investigated it. In accordance with our policies, we instructed the financial institutions that offer payment services to cannabis merchants and connects them to Mastercard to terminate the activity," a spokesperson for the company said on Wednesday.
"The federal government considers cannabis sales illegal, so these purchases are not allowed on our systems," the spokesperson added.
Sunburn Cannabis CEO Brady Cobb stated in a statement that "this move is another blow to the state-legal cannabis industry and patients/consumers who want to access this budding category."
Verano's President, Darren Weiss, stated, "We will continue to advocate for cannabis reform in Washington through further dialogue with elected officials and stakeholders to advance conversations supporting the growth of safe, legal cannabis across the U.S."
Republican Senator John Cornyn called Majority Leader Chuck Schumer's effort to push a marijuana banking measure "wishful thinking" earlier this month.
The SAFE Banking Act is critical legislation that would make banking services more accessible to the cannabis sector.
(Source:www.nasdaq.com)
In spite of the fact that marijuana has been made legal for medicinal and recreational purposes in many states, the majority of banks in the US do not provide banking services to cannabis businesses.
"As we were made aware of this matter, we quickly investigated it. In accordance with our policies, we instructed the financial institutions that offer payment services to cannabis merchants and connects them to Mastercard to terminate the activity," a spokesperson for the company said on Wednesday.
"The federal government considers cannabis sales illegal, so these purchases are not allowed on our systems," the spokesperson added.
Sunburn Cannabis CEO Brady Cobb stated in a statement that "this move is another blow to the state-legal cannabis industry and patients/consumers who want to access this budding category."
Verano's President, Darren Weiss, stated, "We will continue to advocate for cannabis reform in Washington through further dialogue with elected officials and stakeholders to advance conversations supporting the growth of safe, legal cannabis across the U.S."
Republican Senator John Cornyn called Majority Leader Chuck Schumer's effort to push a marijuana banking measure "wishful thinking" earlier this month.
The SAFE Banking Act is critical legislation that would make banking services more accessible to the cannabis sector.
(Source:www.nasdaq.com)