Nevada voters legalized the use of medicinal marijuana in 2000. Sixteen years later, voters approved legislation to legalize recreational marijuana use for adults via the Regulate and Tax Marijuana initiative. As a result, on January 1, 2017, the purchase, possession, and consumption of recreational cannabis became legal.  

The Nevada Department of Taxation oversees the regulation of the state’s licensing and compliance regulations within the cannabis industry. Specifically, regulations put in place by the department apply to the production, distribution, cultivation, and sale of cannabis on the regulated market. 

Although the cannabis industry in Nevada is prosperous, cannabis and cannabis related businesses (CRBs) face challenges when attempting to partner with financial institutions due to marijuana’s classification as a Schedule I controlled substance in the United States. The cash-dependent status of the industry raises unique challenges regarding security and compliance management. 

Unique Cannabis Compliance in the Silver State

The Silver State has strict compliance regulations for those operating as producers, distributors, and retailers in the cannabis industry. Cannabis industry compliance in the state is overseen by the Nevada Cannabis Compliance Board (CCB). The primary mission of the CCB is to protect the public’s health and safety by upholding the cannabis industry to strict operational compliances. 

In addition to the CCB, Assembly Bill 533 established Nevada’s Cannabis Advisory Commission (CAC). The CAC studies cannabis-related issues within the state and makes recommendations to the CCB with the intent of maintaining the economic benefits to the state brought by the cannabis industry. As of 2023, the CAC is dedicated to exploring and studying the potential effects cannabis’s federal legalization would have on Nevada’s cannabis industry. 

Support for the Underbanked and Underserved

In 2022 alone, both medical and adult-use cannabis markets in the state of Nevada generated $965 million in sales. The success of these two sectors has brought the Silver State to the forefront of industry development. Despite the success of the cannabis industry in the Silver State, CRBs and cannabis business owners struggle to partner with reliable financial services. 

At Confia, we set a new standard for financial services in emerging and underbanked industries. Confia offers access to a wholly customizable commerce platform designed specifically for the diverse needs of high-risk industries. 

Our services include:

• • • Checking and savings accounts
    • Online commerce platform access
    • Payroll assistance
    • ACH payment and origination options
    • Wire services

As Nevada continues to navigate the complexities and nuances of the cannabis industry and the potential legalization of cannabis on a federal level potentially in the future, CRBs require reliable partners to ensure their business’s long-term success. Our team at Confia is dedicated to tackling the unique challenges in the Silver State. 

From FDIC-eligible accounts and expanded payment options to compliance assurance, Confia has the tools required to navigate the distinct regulatory landscape of your environment and take your business to the next level.