Before the opening bell, Singlepoint, Inc. (OTC: SING) announced plans to awaken its SingleSeed subsidiary from a quiet period in an effort to capitalize on rising demand and an evolving legislative environment surrounding the cannabis market in the United States. With politicians on both sides of the aisle working toward a resolution to the current marijuana banking conundrum, which limits the ability of legitimate marijuana-related businesses to access banks and credit unions, Singlepoint will look to leverage its existing customer base and position as “one of the first merchant service providers” targeting the marijuana industry in order to spur accelerated growth as the industry continues to mature in the years to come.
“This is an ideal time to actively engage the marketplace,” Greg Lambrecht, chief executive officer of Singlepoint, stated in this morning’s news release. “Though banks and credit unions will not openly acknowledge whether or not they will open Cannabis operations accounts, more and more are deciding to be vocal about their acceptance, and our processor has extensive relationships in a fast-growing industry that has developed to a point where we are confident to proceed toward ramp-up on SingleSeed operations and initiatives.”
Historically, marijuana-related businesses have been caught in a sort of gray area, as, although individual states have begun to legalize the drug for either medicinal or recreational use, it is still illegal on a federal level. As a result, most banking institutions operating in multiple states, and thereby subject to strict federal regulations, have steered clear of the burgeoning industry. The result has been more than a mere inconvenience for dispensaries and other companies like them, as they’ve been forced to function as all-cash businesses, adding considerable risk and security concerns to their operations.
In 2014, the U.S. Treasury Department took a step toward easing these woes when it gave the green light for banks to offer their services to the rapidly-expanding legal marijuana industry. Despite requiring that the banks continue to report any suspicious activity specific to the marijuana industry to federal authorities, the measures have played a role in decreasing banks’ wariness, and industry statistics show that the number of financial institutions that accept accounts from marijuana-related businesses has growth from just 51 to more than 300 over the past two years. Likewise, a survey by Marijuana Business Daily found that roughly 40 percent of businesses in the cannabis industry now have bank accounts. For Singlepoint and SingleSeed, this changing tide is key to forward plans.
“As we look to further engage the marketplace, we will work with our technology partners to develop apps which help protect the industry with a safe way to transact monies for business owners operating within the confines of state laws and guidelines set forth for banks by federal authorities,” continued Lambrecht. “The bottom line, shareholders, is that we know this business, we have amassed a customer base in this business and we are prepared to aggressively enter this market with resources and legislation that were previously unavailable to us.”
For more information, visit the company’s website at www.Singlepoint.com
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