The businesses have no access to traditional banking
The dissonance between the legal status of marijuana in some states and its total ban by the federal government has led to some awkward arrangements. In Oregon, where pot is legal for both recreational and medicinal use, it’s legal to fly around the state with weed but not outside state lines with it.
In California, marijuana is legal for medicinal uses but it’s still a schedule 1 narcotic under federal law, alongside the likes of cocaine and meth. That means the businesses that operate in the medical marijuana industry don’t have legal access to traditional banks. And that means they are absolutely swimming in cash.
– Read the entire article at TIME.