On Friday, Britain’s markets watchdog opened the door to cannabis company listings by releasing to the public how it would navigate laws to prevent pocketing proceeds from criminal use of the drug. The Financial Conduct Authority set out its “approach” to cannabis-related companies interested in a UK listing, pending public consultation on more formal guidance in due course. The legalization of cannabis, including for recreational use in Canada and a number of U.S. states, fuelled a speculative “green rush” on Toronto and New York stock markets last year, with analysts predicting an increase in some listings in Europe in 2020. The FCA said while medicinal cannabis was legalized in Britain in 2018, investment in overseas licensed medical cannabis companies remains a legally complex area, with a risk of triggering broadly-defined British law that prevents financial gain from criminal activity. Proceeds from recreational cannabis companies, even when located in countries that have legalized it, are proceeds of crime under the law according to the Federal Conduct Authority.

Reuters Staff, Business & Financial News, U.S & International Breaking News | Reuters, 09/18/2020 08:09:07

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