Canada Takes the First Big Leap – Cannabis Act
Last month, Canada took a giant leap ahead with the nationwide green light for legalized cannabis. While marijuana enthusiasts and progressives are busy waving their green flags, there is an even greater shift beneath the surface. As the second country in the world to welcome nationwide recreational use, Canada will soon be faced with one of the greatest changes in public policy.
The legislation behind this shift is the Cannabis Act. It is the result of Prime Minister Justin Trudeau’s campaign pledge to combat underage use and organized crime. It is also projected to create a $4 billion industry. What’s more? It will change the entire social and cultural framework of the nation.
With new changes, Canada is in an experimental period as it works towards greater clarity in the regulatory process. The first step along its journey is a Cannabis tracking system. In an effort to prevent the flow of legal cannabis to illegal markets, federal institution, Health Canada is authorized to enforce a tracking system under the Cannabis Act. While intended to preserve the integrity of the market, the system is largely vulnerable to the lack of integrity online.
Hacking, Security and Protection is the Key
As we have seen across the board with Facebook, Equifax, and many others, hacking instances are widespread today. In this climate, keeping regulatory information private and secure has become a real problem. Fortunately, companies in the private sector are beginning to tap into the potential of the blockchain as an immutable and trusted form of record-keeping.
In the public sector, we’re beginning to take a peek. According to Health Canada, "Blockchain was considered, along with several other options, as a potential solution to track movements of cannabis throughout the supply chain." The only setback is that a government standard for blockchain has not yet been in place.
How KYC RegTech Provides One Needed Solution
One company that is talking to the Canadian Ministry and is leading in blockchain plus KYC technology is BlockCerts Blockchain. Their MJWallet platform is a plug and play solution to a compliance heavy, cash-only cannabis industry. Tim Vasko, founder, states, “We’ve built the “Brink’s Armored Transportation of on-line data for the Cannabis Industry and government tracking and compliance solutions”. This is the kind of deliverable that both governments demand and businesses will be grateful to integrate.
On-line sales of cannabis present an even more complex issue than direct walk-in retail sales. How do you know exactly who’s buying? How do you insure that only a person of legal age is making the purchase? The answer is in KYC (Know Your Customer) Technology being developed for the on-line world. Banks have been using it outside the blockchain world, now combined with blockchain it will resolve one key concern. Vasko also states, “With our patent accepted digital identity KYC, it provides Digital ID plus Real Time Regulation, plus blockchain for the demanding needs for on-line registration, tracking and on-line payments. We’re leading the market with implementations today. It took us over 1.7 million past development hours to get here and we’re enthused to be delivering solutions.”
Once there is a more established government standard for using blockchain, we will see greater uses in the public sector as a policy tool. RegTech or Regulation Technology, is the new buzzword that this sector will begin to use frequently in combination with the blockchain. With such an incredible need today in the Fintech Banking world and the cannabis industry, solutions such as Blockchain’s MJWallet tools will provide the need to the current void.