A budding opportunity for the CBD industry

A budding opportunity for the CBD industry

The CBD industry recently received the boost it’s been waiting for as the European Union’s Highest Court officially ruled that it is not a narcotic.

The announcement authoritatively stated; “A Member State may not prohibit the marketing of cannabidiol (CBD) lawfully produced in another Member State when it is extracted from the Cannabis Sativa plant in its entirety and not solely from its fibre and seeds”. This ultimately confirmed that the cannabidiol, along with its wide range of products available on the European market, is not considered narcotic in the eyes of European law, therefore making them a legal substance across a widespread of European Countries.

The ruling comes as a result of the prosecution case against KanaVape, a company who specialised in producing cannabidiol vaporisers, in France. The company was facing prosecution due to using the whole of the hemp plant to create its products, rather than just the fibre and seeds – as per French Law.

The EU ruling now states that banning hemp-derived products that fall in line with legislation, would be in contradiction to the EU’s free movement of goods rules, even when using the whole plant. The primary rules for CBD products across the majority of the EU are to conform to 0.2% THC within the CBD products, anything above (except in certain stand-alone cases) would be not in conjunction with the rules and therefore would bypass the acceptance of the EU Highest Court, and limit saleability.

CBD was initially made legal in Europe over 20 years ago, on 27th July 2000, and today Europe has the 2nd largest CBD market in the world. This new ruling is being seen as the beginning of the end to the stigmatisation of CBD, with the UK industry body stating the ‘landmark’ ruling will have huge ramifications throughout the European sector; ‘CBD companies can expect a clearer route to achieving compliance across the EU. The harmonisation of cannabidiol regulations could finally become a reality.’

So what is CBD?

Cannabidiol, better known as CBD, is one of the hundreds of chemical compounds found in the Cannabis Sativa plant. Tetrahydrocannabinol, more commonly referred to as THC, is the main psychoactive cannabinoid found in the plant and is the root of the ‘high’ sensation that is normally associated with marijuana. However, unlike THC, CBD contains no psychoactive traits. This makes it an appealing option to those who are looking to harvest the medicinal benefits of the plant, without the psychoactive effects.

What are the benefits of CBD?

CBD products are associated with a variety of health benefits. Here are our top 5;

  1. Pain relief: The human body contains a specialized system called the endocannabinoid system (ECS), which is involved in regulating a variety of functions including sleep, appetite, pain, and immune system response. Studies have shown that CBD may help reduce chronic pain by impacting endocannabinoid receptor activity, reducing inflammation, and interacting with neurotransmitters.
  2. Reducing anxiety and depression: CBD oil has shown promise as a treatment for both depression and anxiety, leading many who live with these disorders to become interested in this natural approach. CBD doesn’t necessarily boost serotonin levels, but it may affect how your brain’s chemical receptors respond to the serotonin that’s already in your system.
  3. Relieves cancer side effects – CBD may help reduce symptoms related to cancer and side effects related to cancer treatment, like nausea, vomiting, and pain.
  4. May improve and reduce signs of acne – CBD may be a natural efficient and safe way to treat acne, thanks to its remarkable anti-inflammatory qualities
  5. Acts as a neuroprotector – Researchers believe that CBD’s ability to act on the endocannabinoid system and other brain signalling systems may provide benefits for those with neurological disorders like epilepsy, multiple sclerosis, seizures, Parkinson’s. There have also been long-term studies (with positive outcomes so far) on its decrease and prevention of the neurodegeneration associated with Alzheimer’s disease.

Our team at Animo Associates can provide your business with expert advice on all auxiliary services necessary to support best business practices within the EU and USA, including legal structuring, product licensing, banking, and payment processing. We have a wide network of industry experts we work closely with, and welcome the opportunity to support current and existing clients on best practice based on updated industry information, in any way we can. If you have any queries in relation to CBD commerce and your business’s current operations within the EU, get in contact with us today by calling us on +44 (0)207 060 0835, emailing us at info@animoassocaites.com, or filling out a contact form below!

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