In response to a series of armed robberies in the Puget Sound area, the Washington state Department of Financial Institutions and the state Liquor and Cannabis Board are collaborating to solve the problem of an industry that historically has been cash-based.
Brian Smith, director of communications for the Liquor and Cannabis Board, says the conflict between federal and state laws is to blame for Washington cannabis retailers’ widespread use of exclusively cash transactions.
“Because cannabis is a Schedule 1 controlled substance at the federal level, there are banking laws that are attached to those things that prevent people from using a debit or a credit card that you would use at any other business,” Smith says.
As of May 3, 84 armed robberies had been reported at Washington cannabis stores so far this year, according to Uncle Ike’s i502 Robbery Tracker, an online database provided by Seattle-based cannabis retail chain Uncle Ike’s. That’s more than double the armed robberies targeting cannabis stores in the state in 2021.
On April 19, the Department of Financial Institutions and the Liquor and Cannabis Board released a joint bulletin clarifying to cannabis retailers what cashless options are allowed under state law. A state law that went into effect in 2018 allows cannabis retail licensees to use payment services.
“The rule allows retailers to engage in business with third-party vendors to allow for cashless transactions with…
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In response to a series of armed robberies in the Puget Sound area, the Washington state Department of Financial Institutions and the state Liquor and Cannabis Board are collaborating to solve the problem of an industry that historically has been cash-based.
Brian Smith, director of communications for the Liquor and Cannabis Board, says the conflict between federal and state laws is to blame for Washington cannabis retailers’ widespread use of exclusively cash transactions.
“Because cannabis is a Schedule 1 controlled substance at the federal level, there are banking laws that are attached to those things that prevent people from using a debit or a credit card that you would use at any other business,” Smith says.
As of May 3, 84 armed robberies had been reported at Washington cannabis stores so far this year, according to Uncle Ike’s i502 Robbery Tracker, an online database provided by Seattle-based cannabis retail chain Uncle Ike’s. That’s more than double the armed robberies targeting cannabis stores in the state in 2021.
On April 19, the Department of Financial Institutions and the Liquor and Cannabis Board released a joint bulletin clarifying to cannabis retailers what cashless options are allowed under state law. A state law that went into effect in 2018 allows cannabis retail licensees to use payment services.
“The rule allows retailers to engage in business with third-party vendors to allow for cashless transactions with…
