“Bitcoin Mom” Loses Bank Account After Investing in the Cannabis Industry
Brooke Mallers, also known as “Bitcoin Mom” received the information that their business bank accounts have been closed due to their investments in the cannabis industry. She informed about this issue on Twitter on February 26.
Bitcoin Mom Loses Bank Account
Apparently, investing in the cannabis industry is a reason for banks to close business’ and users’ accounts. Brooke explained on Twitter that they are accredited investors that have excellent credit ratings. Apparently, it is not possible for them to trade cannabis stocks because it is considered a Schedule 1 drug such as heroin, meth, and cocaine, according to US federal laws.
We just lost our business bank account because we invested in the cannabis industry. We're accredited investors with excellent credit ratings. Doesn't matter. Can't touch cannabis because it's a Schedule 1 drug (like heroin, meth & cocaine) according to US federal laws. Idiocracy
— ₿rooke (@bitcoinmom) February 26, 2019
She went on saying that she feels bad for the bank employee that called them and explained the whole situation. Brooke mentioned that he was “very sweet” and explained that their bank charter cannot allow accounts to be involved in the cannabis industry.
During the last year, Cannabis stocks have been reaching new records since recreational cannabis has been approved in Canada and in 10 states of the U.S. Nevertheless, it remains illegal at the federal level and considered to be in the same level as heroin, meth, and cocaine. Just by investing in this industry is a reason for a bank to close users’ or investors’ accounts.
Several users were suggesting that it might be better to use virtual currencies rather than operate with the traditional banking system. Virtual currencies are a permissionless peer-to-peer way to transfer value in an almost instantaneous way. She explained that most people don’t have Bitcoin, but they are working on a solution for customers to acquire Bitcoin and pay for merchandise.
However, Brooke mentioned that they will be using the banking system after founding a forward-thinking bank with at least 120 customers waiting to open an account.