Dear WAAVE Partners,
As we step into 2025, I want to take a moment to reflect on the evolving landscape of our industry and the challenges and opportunities that lie ahead. This year, more than ever, compliance will be the cornerstone of survival and growth for businesses in the high-risk wellness space.
Navigating the Shifting Landscape
The machinery that powers our industry—both literally and figuratively—is under pressure from external forces, including shifts in immigration policies and rising costs associated with importing materials from Asia. While these factors may impact production, the true challenge lies in how businesses adapt. It’s not a question of if the landscape will shift, but when and how we respond when it does.
At the same time, liability lawsuits are on the rise, driven by venture capital firms targeting kratom and hemp companies. These lawsuits are not isolated incidents; they represent an upward trend that underscores the critical importance of compliance. For companies that fail to adhere to regulations, survival is increasingly uncertain.
Increased Enforcement and Audits
We are also seeing a significant ramp-up in enforcement, particularly in states with Kratom Consumer Protection Acts. This enforcement isn’t limited to brick-and-mortar businesses like smoke shops—it extends to online businesses as well. Audits are becoming more frequent, with financial institutions and other entities scrutinizing merchant accounts and questioning their participation in certain industries.
If your business isn’t already using compliant software or lacks robust systems to ensure regulatory adherence, you’re at risk of being caught unprepared. Now is the time to act.
The Upcoming Farm Bill and Industry Responsibility
The forthcoming 2025 Farm Bill will likely bring new changes, and with it, even more stringent enforcement. While the specifics remain unclear, what we do know is that those who fail to comply are not just putting their own businesses at risk—they are jeopardizing the reputation and viability of the entire industry.
Compliance is no longer optional; it is a responsibility we must all uphold. At WAAVE, we are committed to supporting you in navigating these challenges. Our platform is designed to provide the stability, transparency, and compliance tools you need to not just survive, but thrive in this demanding environment.
Moving Forward Together
It’s important to recognize that traditional processors, many of which focus solely on revenue, are increasingly failing to protect businesses like yours. Their lack of compliance focus can leave your company exposed to financial and legal risks that could be devastating. They may promise ease and lower costs, but without the right safeguards in place, they put your business—and the broader industry—at risk. At WAAVE, we don’t just process payments; we prioritize compliance, stability, and long-term success.
2025 is the year to embrace compliance fully—not just because it’s required, but because it’s the right thing to do for the long-term health of our industry. Let’s work together to set a standard of excellence and ensure a sustainable future.
Thank you for your continued trust in WAAVE. Together, we can face these challenges head-on and lead the way in a rapidly evolving market.
Warm regards,
Silvana Carpanelli-Hayes
CEO, WAAVE
