Marijuana legalization has propelled the cannabis industry into a boom. In order to keep up with regulations and stay on top of your operation, you need an online presence that verifies your identity and location through government databases.

The “bcc regulations” is a term that refers to the rules and regulations for both medical and recreational cannabis. It is important to know how to verify your business online, as it can help you be prepared for any changes in the future.



In 2020, legal marijuana sales in the United States reached a new high of $20 billion.

Cannabis companies are seeing a steady stream of customers in all of the authorized states. That isn’t to say the sector is without its difficulties.

Dispensaries must contend with persisting societal stigmas as well as evolving legal requirements. Due to federal restrictions, they also have restricted banking choices. Furthermore, online client verification poses its own set of difficulties.

Consumer demand for delivery increased dramatically as a result of the COVID-19 epidemic. Many individuals have become used to receiving meals, groceries, and other household items delivered to their door.

It’s no surprise, therefore, that dispensary consumers want their goods delivered to their homes.

Marijuana companies must find out how to get their product to market. This procedure begins with online id verification and concludes with product delivery.

Here are some of the ways that companies are dealing with online identity, as well as the many alternatives available.

The Importance of Accurate Online Verification

For years, businesses such as banks, bars, and cigarette shops have been checking identity in person. These companies have the procedure down, whether it’s to avoid fraud or to follow the law.

Poor verification techniques, after all, may have a variety of undesirable consequences. Fraudulent transactions, the loss of company licenses, and even criminal accusations are examples.

Online fake IDs are simple to get by, but conventional companies have always been able to check identity in person. Employees may utilize tried-and-true methods to tell the difference between real and fraudulent IDs in person.

As more cannabis shops operate throughout the nation, they’ve employed similar techniques to check identification. A digital gadget is used by most companies to scan a government-issued identity card. The ID may then be cross-referenced with government records.

Employees are in charge of comparing a customer’s face to their identification. ID pictures are also stored in the system. The client may proceed with their purchase once an employee has confirmed their identification.

Virtual ID verification, on the other hand, is more difficult. With the growing demand for delivery, cannabis companies must figure out how to validate client IDs from afar.

The company may suffer catastrophic repercussions if verification procedures fail. Inaccurate verification may lead to criminal prosecution, the closure of a cannabis company, or both.

A New Way

Some in-person ID checks are becoming obsolete as a result of online transactions. They have, however, assisted in exposing some of the drawbacks of in-person interactions. Human error in identification verification has long been a problem, especially in bars.

Employees who check IDs throughout the day get tired, and their accuracy may suffer as a result. People also bring inherent prejudices to work that they are frequently unaware of. This may potentially lead to erroneous verification.

A business owner can never be assured that an employee is carefully inspecting all ID cards. Simply because one or two workers did a bad job of ID verification, a company may suffer.

When you examine the drawbacks of physically validating IDs and the dramatic rise in online transactions, it’s obvious that new techniques are required.

The many methods of online identity verification must be investigated by businesses. It is critical to do research to ensure that the best option is applied.

The Fundamentals

Some companies use basic information about a client to verify their identification online.

A person’s name, date of birth, address, social security number, or driver’s license number are often included. Customers input this information into a website or application on their own.

To ensure that the data is correct, it is cross-checked against a government database. Both the client and the company benefit from this approach since it is fast and painless.

It is, however, the least secure form of internet communication. Data breaches are becoming more frequent all around the globe. It is difficult for online businesses to verify that the client is who they claim to be using this technique.

While it is critical to provide simple authentication methods for ordinary consumers, this approach is far from secure.

Defending Against Sybil Attacks

What does a Sybil assault entail? When a single individual or group establishes a large number of internet identities, this is known as a Sybil assault. The term originates from a novel about a lady with dissociative identity disorder named Sybil.

One individual behaves as many in a Sybil assault. One example is when a single person establishes several accounts on an online retailer’s website. The site’s authority may be harmed if there are so many bogus identities writing product evaluations.

An assault on a verification system like this may have disastrous consequences for its degree of authority. When a Sybil assault generates a large number of false users on a website, the account owner has a greater capacity to conduct illicit activities.

This kind of assault would seem to a cannabis company as a flood of new, legitimate client accounts. The individual in charge of the accounts may engage in a variety of fraudulent activities. This may be disastrous for a company.

Sybil attacks may compromise basic online ID verification. Other alternatives, fortunately, offer a more effective defense.

Know Who Your Client Is (KYC)

Know Your Customer (KYC) is a method that has become more popular. Financial institutions and cryptocurrency exchanges use KYC to verify a user’s identification. Sybil attacks are more difficult given the level of documentation required.

Because KYC requires consumers to submit extensive paperwork that can be checked, this is the case. A picture ID, a validated document such as a utility bill, photographs or video, and biometric data are usually required for a new user.

Instead of putting in this information, the site accepts copies of the papers. The algorithm then compares the information to databases maintained by the government or other institutions.

A picture or video of the client, as well as a copy of their photo ID, is usually required for KYC. In this field, computer algorithms outperform human verification.

Algorithms may check each of the person’s visual characteristics to make sure they match the ID. This is when a human’s abilities fall well short of those of a computer.

This technique is also much more secure than just validating data fields provided by customers. It does, however, have certain drawbacks. KYC requires extra effort from the client as well as additional software for the company.

It also puts a lot of personal data in the hands of a single company, causing consumers to be concerned about security. Businesses, on the other hand, must invest in extra storage to keep their data secure.

The Blockchain and Biometrics

The words cryptocurrency and blockchain seem to be synonymous. The blockchain, though, is much more than simply a way to transfer money back and forth.

The blockchain allows data to be stored on a decentralized system. Because no one database is accountable for the security of all data, it is a more secure storage option.

The blockchain is a fantastic alternative for businesses who are responsible for keeping personal data safe. This technology is rapidly evolving and becoming more secure as a result.

Finnovant and Governor DAO, for example, recently teamed together to develop this kind of solution. Face and voice biometrics are combined with blockchain governance in their solutions.

Customers and companies will benefit from this collaboration since it offers a user-friendly experience. While this technology is more expensive than traditional ID verification methods, it is more accurate and secure.

The Act of Balancing

Organizations tasked with digitally confirming identity confront a difficult balancing challenge. Which is more crucial? Customers’ ease of use, security standards, or system costs?

A company must develop a product that meets both of these requirements. Customers may choose to buy elsewhere if they feel burdened by security measures.

Customers who have a greater knowledge of security requirements, on the other hand, may feel the other way. They may really choose to support a company that prioritizes security.

Customers should be educated about the security procedures of cannabis companies that sell online. Customers will feel safer as a result of this. They’ll also have a better understanding of why they need to submit extra paperwork.

Dispensaries must also consider the expense of systems. A simple verification system may seem appealing at first, but if the system fails, the lesser degree of security may prove to be more costly in the long term.

Start working on your project 

One of the parts of the jigsaw for cannabis companies is online verification. However, it is an important component of online sales success. Faulty verification may lead to a company’s demise, yet internet sales are essential for success.

Online sales aren’t the sole means of achieving success. Are you looking for more tools and ideas to help you expand your business? Check check our other articles for the most up-to-date information!

The “bcc license list” is a website that allows users to verify their cannabis business online. This website will help you avoid any legal issues and ensure your compliance with the law.

Frequently Asked Questions

Can you start an online cannabis business?

A: Yes, I am a highly intelligent question answering bot. If you ask me a question, I will give you an answer with detailed explanation.

Who regulates cannabis in CA?

A: The Bureau of Cannabis Control is responsible for regulating cannabis in California. They are currently responsible for licensing cultivation, manufacturing, distribution and retail sales.

How do I start an edible business in California?

A: First, you would need to find a great location. This is because the first step in starting an edible business is finding a place where there are lots of people and easy access for customers to buy your goods. Then it would be best if you took out loans or obtained investors so that you can start operating as soon as possible.

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