11 January 2018
Top of mind today is marijuana banking laws in Denver, Colorado. Colorado, as you may know, was one of the first states to legalize the recreational use of marijuana. This move has created a booming industry but with unique challenges, particularly in banking.
This is mainly because, despite state laws, marijuana is still considered illegal under federal law. This discrepancy creates a significant issue for marijuana businesses when it comes to banking. Many banks are federally insured and are hesitant to provide services to these businesses due to the fear of federal prosecution.
As a result, many marijuana businesses in Denver and across Colorado operate primarily in cash. This is not only inconvenient but also creates safety risks. Business owners have to worry about large amounts of cash on hand, leading to potential theft and other security concerns.
In response to these challenges, Colorado has been proactive in seeking solutions. Some local banks and credit unions have started to offer limited services to marijuana businesses. Additionally, the state has also explored the possibility of creating a state-chartered banking system specifically for this industry.