In the cannabis industry, nearly every business decision faces stringent regulatory oversight, and non-compliance can result in hefty fines or even a revoked license. But the challenge of tracking new rules and regulations is a significant burden in both time and manpower. Consider that each state develops its own commissions and set of operating standards, while cities and towns also create their own guidelines regarding transactions, auditing and documentation. The result is literally thousands of variations on the rules and regulations that govern the cannabis industry.
For multistate operators, these nuances in state and local laws create complexity at every level of the organization. Whether it’s securing an operating permit, hiring a new employee or even creating packaging, different rules apply – but they must be adhered to in order to remain in good standing.
Accomplishing that can take teams of risk and compliance officers, lawyers and community ambassadors. It can mean petitioning cities and towns for meeting notes, tracking regulatory changes on local levels where companies operate – or want to – and reviewing each and every outgoing marketing message for compliance.
Fyllo believes it can streamline regulatory tasks for cannabis companies with a single platform. Legal teams can use the platform to obtain real-time documents regarding local and federal announcements, ballot measures, enforcement, fee schedules, forms, and filing instructions. Businesses can use the console to access information regarding specific areas of interest, including advertising, applications, banking, safety, labeling, operations, record keeping, regulation enforcement, taxes and zoning.
The platform’s intelligence is powered by CannaRegs, a regtech database that Fyllo acquired in January of this year. CannaRegs tracks state and municipal cannabis rules and regulations across 4,000 U.S. jurisdictions and has been integrated into Fyllo’s Compliance Cloud.
Chad Bronstein, founder and CEO of Fyllo stated, “This latest integration with CannaRegs sets a new benchmark in smart, regulatory technology designed for an entire organization. We believe that Fyllo Compliance Cloud will set the standard for all highly-regulated industries.”
In the past few years, regulatory technology has emerged in other highly regulated sectors to help risk and compliance teams keep up on policies and procedures. For instance, in finance, rule changes have increased 500 percent in the last decade and a new regulatory update is implemented every seven minutes. RegTech platforms customized for individual sectors not only cut the cost of the compliance processes but also improve a company’s effectiveness – allowing them to assess risks quicker and be more competitive.
Mitch Kahn, founder and CEO of Grassroots said Fyllo helps the company achieve similar results. “The solutions that Fyllo offer set a new standard for regulatory technology, helping us mitigate risk and seamlessly maintain compliance across our operations,” said Kahn.
Of course, cannabis companies are already capital strapped and it remains to be seen where companies will put their valuable cash. Investing in regtech platforms like Fyllo may save companies in the long-run, but it may be viewed as a nice to have rather than a necessity as they recover from a tumultuous two years that’s included down-markets, global pandemics and looted stores.
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