The cannabis industry is highly regulated, with numerous government agencies and law enforcement groups watching operators closely at local, state and federal levels. Adding further convolution is the fact that every state with a legal cannabis market (whether medical, adult-use, or both) has its own set of laws, regulations, tax and fee structures, and governing bodies.
This intricate web of tax and regulatory demands makes maintaining compliance not only difficult, but imperative for cannabis business operators, as failure to comply can result in crippling fines and the revocation of licenses essential to legal operation.
The concerns that keep cannabis operators up at night also make cannabis an ideal field for brave entrepreneurs in the technology space. The multitude of challenges faced by the cannabis industry are ripe for relief from advanced technology solutions.
For one, maintaining compliance in cannabis requires detailed “seed-to-sale” tracking and documentation. Those at the later stages of the supply chain (manufacturers, retailers, etc.) need to have a clear view on the product they are working with. All products must come from licensed operators, meet a flurry of regulatory requirements – including potency, packaging rules, and environmental concerns – and have all taxes and fees paid appropriately at every step along the way.
Tracking plants from the field to the dispensary is one area where advanced tech solutions can help.
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