PotCoin Community,
The following letter has been drafted to address the Colorado Medical Marijuana Enforcement Division (M.E.D.) in regards to the use of virtual currencies for the purchase of marijuana and related products, both medical and recreational. This has been completed in coordination with attorney's Rachel K. Gillette, a renowned Cannabis Attorney out of Colorado, and Sean Kelly, PC or Oregon. Additionally, I would like to thank Ren Wilson, RedRhino, and Joel Yaffe for their support and consultation.
As an investor in cannabis technology and start-ups I have a significant interest in seeing thousands of hours of work and dollars not go to waste. In light of that, I have personally sponsored this letter and have contributed over $1k in USD and 100k in POT to date. While it is not necessary to seek any reimbursement, I am a bit smitten by the Vanity Ninja app that just came out, so if you want to help out send some coin to: PDUBYGH5GJNhQ8U6iYS8jceRfMBdLxYY7p
We will receive a response within 30 days and when the M.E.D. formulates a response it will be made publicly available on their site at the following location:
https://www.colorado.gov/pacific/enforcement/laws-constitution-statutes-and-regulations-marijuana-enforcement#Once received, this public document will serve to ease any concerns of Colorado dispensary owners regarding the use of virtual currencies for the sale of marijuana and related products. This letter is in preparation for plans underway to integrate with cannabis retailer point-of-sale systems combined with a universal mobile application for customers.
February 1, 2015
Ms. Barbara Brohl Executive Director – Colorado Department of Revenue State Licensing Authority - Marijuana Enforcement Division 455 Sherman Street, Suite 390 Denver, CO 80203
Re: Petition for Statement of Position
Dear Ms. Brohl:
On behalf of my client marijuana business licensees and pursuant to 1 CCR 212-1-1.104 and 1 CCR 212-2.104, I hereby petition the Division for a statement of position concerning the applicability of provisions of the Medical and Retail Marijuana Code, or any other statute or regulation of the State Licensing or other Authority. We request a statement of position for clarity and in order to achieve compliance.
Background: Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value. It operates like “real” currency -- i.e., the coin and paper money of the United States that circulates and is customarily used and accepted as a medium of exchange -- but it is not a fiat currency. Federal and State governments are aware that “virtual currency” may be used to pay for goods or services, or held for investment. Hundreds of businesses in Colorado from Microsoft to Jerome’s Pizza in Denver are already accepting virtual currency as a form of payment.
In this instance, the company offering the marijuana business the ability to accept virtual currency would collect no transaction fees. The marijuana business’s customer is offered the option to pay with virtual currency or cash at time of sale. The marijuana business’s point of sale software would check the current live markets for actual price of the virtual currency in U.S. Dollars at time of sale and record the transaction, much like any other cash or credit card transaction. The transaction takes seconds and automatically would update the merchant’s Point of Sale terminal instantaneously. The software dovetails with the marijuana business’s marijuana inventory tracking system (“METRC”, formerly “MITS”) and logs every transaction.
All transactions would be recorded in U.S. Dollar value, thus the customer would be paying applicable Colorado taxes at the Point of Sale.
Clarification of whether a medical marijuana business licensee may accept virtual currency, as a form of payment for medical marijuana products or other products. Questions:
1 CCR 212-1:1.309
Secondary Software Systems Allowed a. Nothing in this rule prohibits a Medical Marijuana Business from using separate software applications to collect information to be used by the business including secondary inventory tracking or point of sale systems.
Questions:
(a) May a licensed medical marijuana store accept a virtual currency as a form of payment for marijuana and marijuana products from customers?
(b) May a licensed medical marijuana store accept virtual currency for other (non-marijuana) products from customers?
(c) May a licensed medical marijuana business use a virtual currency for wholesale marijuana and marijuana products transactions with another licensed medical marijuana business?
Clarification of whether a recreational marijuana business licensee may accept virtual currency, as a form of payment for recreational marijuana or other products.
1 CCR 212-2.309 4. Secondary Software Systems Allowed a. Nothing in this rule prohibits a Retail Marijuana Establishment from using separate software applications to collect information to be used by the business including secondary inventory tracking or point of sale systems.
Questions:
(a) May a licensed recreational marijuana store accept a virtual currency as a form of payment for marijuana and marijuana products?
(b) May a licensed recreational marijuana store accept virtual currency for other (non-marijuana) products from customers?
(c) May a licensed medical marijuana business use a virtual currency for wholesale marijuana and marijuana products transactions with another licensed medical marijuana business?
I look forward to your response to these questions within 30 days pursuant to 1 CCR 212-2.104 (A) and I thank you for your time and attention to this matter.
Pursuant to 1 CCR 212-2.104 (E), I hereby affirm that this petition for a statement of position to the Division was mailed, on the same day that the petition was filed with the Division, to the relevant jurisdiction.
Sincerely,
Rachel K. Gillette, Attorney
cc: Lewis Koski, Executive Director, MED Kelly Rosenberg, Colorado AG Office John Viverito, Colorado AG Office
