Cannabis regulation is outdated and often contradictory. Legalization signals intent but policymakers need to translate that intent into something tangible. Something that actually supports a functional, accessible market.
At the Global Cannabis Regulatory Summit 2025, a panel of industry experts and policy advocates examined how these barriers have slowed reform in the UK and the US, and suggested actionable recommendations that could finally help both nations to deliver on legalization’s promise.
Issues with Access and Standardization Persist Despite Legalization
The UK legalized medicinal cannabis by specialist prescription in 2018, yet patients continue to face huge challenges accessing free prescriptions on the National Health Service (NHS). Patients are missing out on life-altering treatments for conditions like pediatric epilepsy and thousands have sought private options instead.
One barrier is the ‘process of crime’ clause in the Proceeds of Crime Act 2002 (POCA). Designed to disrupt organized crime, POCA can still affect licensed medical cannabis operators (especially if they have overseas operations or partners), leaving them vulnerable to outdated penalties. Legitimate businesses also face difficulty securing investment or accessing banking services.
The US faces its own challenges. Cannabis is still a Schedule I substance despite being legal for medical use in 39 states plus the District of Columbia. Even with legal frameworks established in those jurisdictions, banks must treat cannabis transactions as potentially illicit, filing Suspicious Activity Reports (SARs) and often refusing service entirely.
A lack of quality standards further impedes the market’s potential. Europe has moved ahead with the July 2024 adoption of a harmonized monograph for Cannabis Flower, creating consistent quality benchmarks. In the US, state-by-state variations of THC thresholds and testing methodologies persist.
Proposed Solutions
The panel suggested several solutions:
- UK: Amending POCA to exempt licensed medical cannabis activities would unlock significant investment and operational capacity.
- US: Enacting the SAFER Banking Act’s safe harbor provisions would help protect financial institutions from federal liability.
- Global: Developing internationally aligned quality standards and creating consistent KYC and compliance frameworks for financial institutions is key. The two could be based on best practices in the alcohol industry while accounting for cannabis-specific operational needs.
Interdepartmental Incoherence
Even when laws allow medical cannabis, disjointed implementation can undermine access. In the UK, the Home Office maintains a strict law enforcement stance on cannabis, while the Department of Health and Social Care (DHSC) regulates its medical use. This disconnect and the resulting knowledge gaps within enforcing institutions can put patients at risk of arrest or product confiscation despite holding valid prescriptions.
The NHS’s rigid funding model exacerbates the issue, forcing thousands of patients to seek private alternatives. This has created a dual market: one that’s private and unaffordable for many, exacerbating health inequalities — and one that’s public yet ineffective.
Proposed Solutions
The panel recommended greater collaboration between the Home Office, DHSC, DVLA and law enforcement. It was suggested that a joint taskforce be developed to help streamline protocols and ensure consistent messaging across departments.
Regulatory Inertia Means Missed Opportunities
Investors worldwide are ready to invest. But in countries like the UK and US where regulation is lagging, innovation is thwarted.
In the UK, there are reports of cannabis growers being de-banked and operating on a cash-only basis. Ironically, this makes transparency and compliance more difficult. An exception is the island of Jersey, where exemptions allow legal cannabis operations to access banking while maintaining strict AML protocols.
In the US, the threat of federal prosecution keeps most financial institutions on the sidelines. Without reform, investment in cultivation, research, and product innovation remains stunted.
Proposed Solutions
Recommendations from the panelists included:
- Implementing targeted regulatory changes to enable safe capital flow without undermining compliance.
- Developing unified international standards for compliance and safety, borrowing from both the pharmaceutical and alcohol sectors.
- In the UK, creating a Medical Cannabis Fund (modelled on the Cancer Drugs Fund) could subsidize NHS prescriptions. It could also support efforts to gather data on the efficacy of medicinal cannabis products.
- Launching pilot projects where cannabis businesses, regulators, and banks test new compliance models before broader implementation.
- Avoiding excessively stringent licensing or testing requirements that deter participation in the legal market.
Takeaways for Brokers and Insurance Professionals
Regulatory inconsistency raises the risk for cannabis companies as legal operations face sudden, unexpected disruptions that undermine their stability. The best hedge against that uncertainty is to partner with an insurer that has a deep understanding of the sector’s risks and its unique regulatory terrain.
Relm provides dedicated cannabis insurance solutions, whether your client cultivates, distributes, or develops products. Contact us today to learn more, and download the full Global Cannabis Regulatory Summit White Paper from Artemis Growth Partners here.
