Interest in cannabidiol-based products has been on the rise, as recent statistics show that the global cannabis market is expected to have reached $42.7 billion in the next four years. Yet as hemp-derived cannabidiol, or CBD, products gain popularity, federal agencies are proceeding with caution around regulatory measures for cannabis products.
In order to address regulatory concerns, policymakers in different regions are looking toward using blockchain technology as a solution that can provide transparency into the complex cannabis supply chain.
Ensure CBD becomes a novel food in Europe
Most recently, the Cannabinoid Association of the Netherlands, which is a consortium of Dutch cannabidiol producers that serve as an advisor to the Dutch government, announced the launch of a blockchain-based traceability tool that would enable consumers to trace certain CBD products directly back to their source.
The CAN launched its blockchain initiative to help provide clarity around the European Union’s looming decision to classify CBD as a “novel food” or not. While European food standards agencies, including the United Kingdom’s, planned to allow CBD products to be sold at certain food retailers in 2021, the European Commission revised its 2015 Novel Food Regulation to say that CBD is not legally classified as a novel food.
So, while it remains unclear how CBD-based food products will be classified in the U.K. and throughout parts of Europe, the CAN’s blockchain tracing tool could demonstrate how a CBD regulatory environment might function and thrive in the United Kingdom.
Mark Reinders, the CEO of HempFlax and a co-founder of CAN, told Cointelegraph that the CBD industry is a lucrative market that attracts a wide array of participants. But in turn, bad actors selling low quality, false or even harmful products are also involved in the cannabis industry. According to Reinders, full traceability along every step of the hemp-derived CBD supply chain is the only way…