Originally published at: https://boingboing.net/2021/10/26/after-being-blocked-by-credit-card-networks-kratom-sellers-turn-to-crypto-and-echecks.html
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I’m certainly not defending Visa and MC monopolistic practices but to be fair, they and other financial services and banks are subject to the fact that marijuana and it’s derivatives are still classified as a schedule I drug on the federal level. The CC networks would be liable for massive criminal penalties if they didn’t enforce these restrictions.
As for kratom and other technically legal yet quasi-psychedelic substances, the CC networks take an extremely conservative stance since they process payments globally and not just in the US. It leads to a complex web of federal, state and foreign compliance rules and anti-money laundering regulations.
They don’t crack down on these sellers because of some moralistic, puritan viewpoint. It’s strictly business.
https://www.uspharmacist.com/article/the-dea-changes-its-mind-on-kratom
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Meanwhile California is actively facilitating banking for pot business.
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