Leading cannabis regulatory consultant, CannDelta, has released a statement regarding the recent decision by Mastercard to limit its debit product for cannabis dispensary transactions and impose excessive fees within legal federal jurisdictions.
The move has led to concerns about fairness and regulatory power in the banking sector, creating a significant setback for both cannabis retailers and customers.
Lucas McCann, CSO of CannDelta, noted that while the company recognises the complexities of navigating the conflicting state and federal laws surrounding cannabis, Mastercard’s high fees, particularly in Canada, hint at an imbalanced playing field. “This undue pressure on the cannabis industry calls for a prompt need for regulatory clarity and reform,” said McCann.
CannDelta emphasised that secure and reliable financial services are vital for the development of the cannabis industry, which otherwise faces security risks, constrained growth and inefficiencies from being largely cash-operated.
The statement from CannDelta also stressed the need for legislation like the Secure and Fair Enforcement (SAFE) Banking Act which has consistently struggled to become law.
Currently awaiting Congress approval, this legislation would offer essential banking services to cannabis businesses and provide a safer environment for financial institutions servicing the industry without fear of federal reprisal.
CannDelta strongly supports the SAFE Banking Act’s passage, considering its potential to simplify operations within the cannabis sector and significantly enhance the industry’s economic impact.
The consultancy firm is urging Congress to expedite the passage of the SAFE Act for the benefit of the cannabis industry and its customers.
CannDelta, committed to offering its clients strategic solutions to navigate these regulatory changes, encourages all stakeholders in the cannabis industry to engage in a constructive dialogue with lawmakers and financial institutions.
They believe this would promote the benefits and necessity of the SAFE Banking Act.
To find out more about CannDelta and its services, visit www.canndelta.com.