I called Nick, the original Potcoin dev two weeks ago and we discussed this very issue. The Potcoin team is well aware of the legal issues surrounding crypto and River Rock dispensary in Colorado is taking a very cautionary approach to accepting cryptocurrencies for Cannabis. Once you start accepting crypto for Cannabis in a retail business, you are putting yourself under Federal jurisdiction as a money transmitter.
You've been going fine, but now you've stepped into the realm of the blatantly not true.
There's nothing about accepting crypto as a merchant that makes your a money transmitter.
I never said accepting crypto is illegal... I said that a business that goes into exchanging USD for crypto requires a money transmitter license.
But they won't be exchanging USD for crypto, they will be selling their crypto for USD!! Lol plus isnt this bud delta9 and the teams bud and the shops are selling them for him and paying him a fee to exchange there!? If so he'll be dealing with the coins from there. If that's what I understand from him growing a current type of strain you can buy with it. Besides the ones they already have that aren't Canndy!
No, that's not how it works. Selling USD for Crypto or vice versa is considered money transmitting... and it's completely legal provided that you have a money transmitter license and you follow KYC/AML guidelines.
Okay then, why not just follow the guidelines then. I mean if there are 1000+ shops that accept bitcoin and can follow the laws. Why can't Cann do the same?
Yes they accept Bitcoin, but they do not sell Bitcoin.
We are talking about two different things here.
So your telling me the shops that get millions of days worth of BTC keep them in BTC? You don't think they sell them for cash on the exchanges!!?
You are completely missing the point. The point is that if you want to sell CANN, or BTC, or any crypto in exchange for USD, you can be considered a money transmitter.
I was incorrect when I said you need a license to accept crypto. Obviously that's not true. Anyone can accept crypto for payments.
Where it gets tricky is how do you sell CANN to regular people that don't know how to acquire Bitcoin? This is where you need to be careful.
We'll is just selling a "paper wallet" then after sending that person " Free "coins against any rules!?they are paying for piece of paper, not the actual coins. I mean they aren't considered money right but more of a Commodity?