1. introduction

The cannabis market in Brazil is at a crucial turning point, full of possibilities that could redefine not only the economy, but also public health, agribusiness and the country’s social landscape.

We are on the verge of a green revolution that transcends the medicinal aspect, reaching sectors such as industry, cosmetics and food, with an economic potential that is still little explored. The advance of regulation, driven by landmark decisions in 2024 by the Federal Supreme Court (STF) and the Superior Court of Justice (STJ).

In this article, we’ll take you on a journey that explores everything from the historical context of cannabis regulation to the current panorama of the market, including financial figures, the number of patients, companies operating and the fundamental role of associations.

In addition, we will outline projections for the future, showing the expected impact on the Brazilian economy, job creation and innovation. Get ready to discover how Brazil can become a global player in this booming sector and why now is the right time to be part of this transformation.

2. The Historical Context of Cannabis Regulation in Brazil

2.1 The First Prohibitions and Drug Policy (19th century – early 21st century)

The history of cannabis in Brazil dates back to the colonial period, when the plant was used for industrial purposes, especially in the production of fibers. However, in the 20th century, cannabis became criminalized, influenced by international anti-drug policies. Brazil followed a prohibitionist approach, culminating in the 2006 Drug Law (Law No. 11.343), which toughened the penalties for trafficking, but brought about the first differentiation between users and traffickers.

2.2 Advances in Medicinal Regulation (2015 – 2024)

The initial milestone for the regulation of medicinal cannabis in Brazil was Collegiate Board Resolution (RDC) No. 3 of 2015, which removed cannabidiol (CBD) from Anvisa’s list of prohibited substances. In 2019, RDC No. 327 authorized the production and marketing of cannabis-based products for medicinal purposes, a significant step forward for patients and healthcare professionals.

In 2024, two landmark decisions boosted the debate: the Federal Supreme Court (STF) moved to decriminalize possession for personal use, and the Superior Court of Justice (STJ) ruled that Anvisa must regulate the cultivation and marketing of cannabis within six months. These decisions did not occur in isolation, but were a reflection of a growing social, scientific and economic demand for changes in the country’s drug policy.

The STF’s decision was motivated by overcrowding in the Brazilian prison system, where a significant part of the prison population is made up of people imprisoned for crimes related to the possession of small amounts of drugs. The court recognized that criminalizing possession for personal use does not effectively contribute to reducing consumption and, on the contrary, perpetuates social and public health problems. The STJ’s decision, which obliges Anvisa to regulate cannabis cultivation, reflects the need to create a clear and safe regulatory environment for patients, health professionals and entrepreneurs, as well as combating the illegal market and promoting access to quality treatments.

2.3 Current Legislative Movements

Bill 399/2015, which aims to regulate the cultivation of cannabis for medicinal and industrial purposes, is one of the main initiatives currently before Congress. The proposal seeks to amend Law No. 11.343/2006 to make it possible to sell medicines that contain extracts, substrates or parts of the Cannabis sativa plant in their formulation.

3. The Current Cannabis Market in Brazil

3.1 Economic Dimension and Sector Data

The medical cannabis market in Brazil has shown consistent growth, even in a still restrictive regulatory environment. The sector’s current turnover is estimated at between R$21.9 million and R$49.9 million annually, according to the Kaya Mind report. This figure reflects both the increase in demand for cannabis-based products and the growth in the number of medical prescriptions and public awareness of the plant’s therapeutic benefits.

In addition to revenues, Brazil already has a significant business structure in the sector. There are currently 153 active companies operating in various areas, including the import, distribution and marketing of cannabis-based products. The market offers around 439 products available for import, including oils, capsules, sprays and other formats that meet different therapeutic needs.

3.2 Patient Profile and Medicinal Demand

The number of patients being treated with medical cannabis in Brazil has grown significantly in recent years. It is estimated that more than 50,000 patients are currently being treated with cannabis-based products. This number reflects both the increase in medical acceptance and the greater availability of information for the general public.

The potential for expansion is even more impressive. According to estimates by Kaya Mind, Brazil could reach up to 6.9 million patients who could benefit from medical cannabis treatments. This audience includes people with conditions such as refractory epilepsy, chronic pain, multiple sclerosis, anxiety disorders, among others.

3.3 The Role of Patient Associations and National Industry

Patient associations play a key role in democratizing access to medical cannabis in Brazil. Organizations like AMA+ME have been essential in ensuring that patients with complex medical conditions can access quality treatments, even in the face of regulatory and economic barriers.

These associations not only promote access, but also work to raise awareness in society, train health professionals and advocate for public policies that expand regulation. In addition, the growth of the domestic industry, with the emergence of Brazilian brands focused on research, development and innovation, demonstrates Brazil’s potential to become a leader in the medical cannabis market.

4. The Economic Potential of Cannabis in Brazil

4.1 Market Growth Projections

The projections for the cannabis market in Brazil are very promising, especially considering the potential for expansion after broader regulation. According to the Kaya Mind report, the sector has the capacity to generate up to R$9.5 billion in the fourth year after full regulation. This growth will be driven not only by increased demand for medicinal products, but also by the diversification of the use of cannabis in industrial, cosmetic and food sectors

This growth potential is anchored in factors such as the increase in the number of patients treated with medical cannabis, the emergence of new companies in the sector and the development of technologies for cultivation and production. Brazil, with its favorable climate and one of the largest agricultural areas in the world, is strategically positioned to become one of the main global players in cannabis production.

4.2 Generating Jobs and Business Opportunities

Cannabis regulation has the potential to generate a significant number of jobs, both formal and informal. Estimates indicate that the sector could create hundreds of thousands of new jobs in various areas, including cultivation, research, product development, distribution, sales and support services

The economic impact goes beyond generating direct jobs. The cannabis production chain includes everything from farmers and scientists to marketing, logistics and information technology professionals. In addition, the sector can also boost entrepreneurship, with the emergence of start-ups focused on innovation and the development of new cannabis-based products.

4.3. Industrial Hemp: An Emerging Economic Pillar

Industrial hemp represents a significant economic opportunity for Brazil. Used in a wide range of products, from fabrics and building materials to food and cosmetics, hemp has the potential to generate up to R$4.9 billion in sales. In addition, it is estimated that the sector could generate around R$ 330 million in tax revenue, making a substantial contribution to the national economy.

Hemp cultivation also offers environmental advantages, such as the ability to sequester carbon from the atmosphere, improve soil quality and reduce the need for pesticides and herbicides. This makes it a sustainable crop, in line with global demands for greener and more responsible agricultural practices.

5. The Future of the Cannabis Market in Brazil

5.1. The Impact of Expanded Regulation

The future of the cannabis market in Brazil will depend directly on the evolution of regulation. Expanding access to medical cannabis, regulating cultivation and opening up industrial use of hemp will create an environment conducive to sustainable growth in the sector. This new scenario will allow the development of a robust production chain, which will benefit everything from small farmers to large industries, promoting economic inclusion and technological innovation.

In addition, increased regulation could attract national and international investment, stimulating the creation of new businesses and strengthening existing companies. The positive impact will extend to areas such as scientific research, public health and the development of sustainable technologies, consolidating Brazil as a leading player in the global cannabis market.

5.2 Global trends and opportunities for Brazil

Brazil can benefit from the lessons learned in other countries that have already regulated the cannabis market, such as Canada and Uruguay. In Canada, for example, the legal market has generated billions of dollars and thousands of jobs, showing the economic potential of cannabis when well regulated. Uruguay, a pioneer in legalizing recreational use, has demonstrated how effective regulation can reduce the illegal market and improve public safety.

Adopting international best practices and adapting them to local realities will be essential for the success of the sector in Brazil. This includes the creation of public policies that encourage research, the training of qualified professionals and the development of legislation that promotes safety, quality and access to cannabis products.

5.3 Challenges and opportunities for Brazil

Despite the potential, Brazil faces significant challenges, such as resistance from conservative sectors, a lack of accurate information about the benefits of cannabis and the need for clear and efficient regulation. The stigma associated with the plant is still an obstacle to public acceptance and the advancement of more progressive policies.

However, the opportunities outweigh the challenges. The cannabis market is growing globally, and Brazil has favorable climatic and economic conditions to stand out in this scenario. The positive impact on public health, with increased access to effective treatments, and on the economy, with job creation and tax collection, are strong arguments for boosting the regulation and development of the sector in the country.

6. Conclusion

The cannabis market in Brazil is at a turning point. The trajectory so far, marked by significant advances in regulation and public debate, demonstrates that the country is ready to take the next step towards a more structured and prosperous sector. We have seen that cannabis is not only a health issue, but also an economic opportunity capable of boosting job creation, tax collection and innovation in various sectors, such as medicine, industry and agriculture.

Brazil has all the conditions to become a leading player on the international cannabis scene, taking advantage of its favorable climate, agricultural capacity and robust domestic market. The transformative potential of regulation goes beyond the economy, positively impacting public health, safety and the well-being of society. The future of the Brazilian cannabis market is promising and it is in our hands to build a sustainable, inclusive ecosystem based on international best practices.

Special Thanks

We would especially like to thank Kaya Mind, whose expertise and materials were fundamental to the preparation of this article. Most of the information and data presented here was taken from studies and reports developed by the company, which stands out as a reference in market intelligence in the cannabis sector in Brazil. To find out more about Kaya Mind’s work, visit: www.kayamind.com

Bibliographical references

• Kaya Mind (2024). Yearbook of Medicinal Cannabis in Brazil.
• Kaya Mind (2024). Medicinal Cannabis Report.
• Kaya Mind (2021). Executive Summary Cannabis Economic Impact Report.
• Kaya Mind (2024). Hemp in Brazil.
• National Health Surveillance Agency (ANVISA) (2024). Resolutions and Regulations on Medicinal Cannabis.
• Chamber of Deputies of Brazil (2024). Bill 399/2015 and Legislative Updates.

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1. introduction

The legalization of cannabis in Canada is more than a decade old and represents a significant milestone for global drug policy. Implemented in October 2018, legalization sought to reduce organized crime, protect public health and generate economic revenue. This case study examines the impacts of this decision, addressing economic, social and public health changes, as well as reflecting on what Brazil can learn from this experience.

Since its implementation, Canada has become one of the most watched countries globally when it comes to cannabis regulation. The results of this policy offer valuable insights for nations considering following suit, highlighting both the benefits and challenges faced during the process.

2. The Cannabis Legalization Process in Canada

2.1 Timeline of Legalization

The legalization process in Canada began with debates in mid-2015, culminating in the passing of the Cannabis Act (Bill C-45) in 2018. The aim was to regulate the production, distribution and consumption of cannabis for recreational and medicinal purposes. This decision was driven by a series of studies highlighting the negative impacts of criminalization and the potential for economic benefits.

The advancement of the legislation was supported by the government of Prime Minister Justin Trudeau, who stressed the importance of a regulated market to protect young people and eliminate the illegal market. The process involved public consultations, impact assessments and parliamentary debates, reflecting Canada’s commitment to establishing an evidence-based drug policy.

2.2 Regulatory structure

The federal government has established general guidelines, while provinces and territories have defined specific rules, such as minimum age of consumption and places of sale. The Canadian model is decentralized, allowing for regional adaptations to meet local needs. For example, some provinces allow sales in private stores, while others maintain state control over distribution.

This approach allowed for significant flexibility in the implementation of the policy. Some provinces adopted more restrictive models, such as Quebec, which limited the number of stores and established strict rules for advertising. In contrast, provinces like Alberta have opted for a more liberal market, with a greater presence of private stores and ease of access. This diversity of policies is reflected in the different product offerings, covering cannabis for medicinal use, recreational use, cosmetics, food and industrial applications such as textiles and bioplastics. This has resulted in a variety of experiences within Canada itself, offering a living laboratory for studying the impacts of legalization.

3. Economic Impacts of Legalization

3.1 Cannabis Market Growth

In 2024, the legal cannabis market in Canada exceeded CAD 10 billion in annual revenues, with a cumulative growth of more than 200% since 2018. The country has also become one of the largest exporters of medical cannabis in the world, boosting the economy.

This growth has been driven by a combination of factors, including the expansion of production infrastructure, increased social acceptance of cannabis and the development of new products. The sector has become an important economic engine, contributing to GDP growth and the diversification of the Canadian economy.

According to Sechat, the cannabis sector has generated more than CAD 15 billion in tax revenue and more than 151,000 direct and indirect jobs since legalization.

3.2 Generating Jobs and Business Opportunities

Legalization has created more than 150,000 direct and indirect jobs in the cannabis sector, including cultivation, distribution, research and related services. Adjacent sectors, such as logistics and technology, have also benefited.

In addition to the jobs directly related to the production and sale of cannabis, the sector has generated opportunities in areas such as marketing, scientific research and the development of new products. This has contributed to the creation of a robust ecosystem, with a positive impact on various areas of the Canadian economy.

3.3 Tax Collection and Fiscal Impact

The Canadian government collected more than CAD 3 billion in cannabis-related taxes in the first five years. These funds were earmarked for public health, education and safety programs.

The tax revenue not only generated significant income for the government, but also allowed for investments in harm reduction programs and public education. This has contributed to a more balanced approach to drug policy, with a focus on both health and public safety.

According to Fast Company Brasil, the Canadian cannabis market was worth approximately US$4.2 billion in 2023, and is expected to reach US$5.63 billion in 2024.

4. Social and Public Health Impacts

4.1 Reducing Cannabis-related Offenses

There has been a reduction of more than 50% in offenses related to the possession and use of cannabis. Legalization has contributed to relieving the judicial system, allowing it to focus on more serious crimes.

This change has resulted in a significant reduction in the costs associated with law enforcement, as well as relieving the prison system. The positive impact was particularly evident in communities that previously faced disproportionate rates of cannabis-related criminalization.

4.2 Cannabis use and social behavior

Consumption increased moderately among adults, but remained stable among young people, disproving fears of an uncontrolled increase. Education campaigns have helped to promote responsible use.

Research indicates that legalization has not led to a significant increase in consumption among adolescents, one of the main arguments against it before the policy was implemented. This highlights the importance of well-structured education and prevention strategies.

4.3 Public health and safety

The impact on public health has been mixed. Although there were concerns about traffic accidents related to cannabis use, awareness programs reduced these risks over time.

Studies have shown a slight rise in traffic accidents initially, followed by a stabilization, suggesting that the public has adapted to the new reality. Awareness programs about the risks of driving under the influence of cannabis have been crucial in mitigating this impact.

5. The Cannabis Products Market

Canada has significantly expanded its portfolio of cannabis-based products, taking advantage of regulatory flexibility to diversify the offer and cater to different audiences. Products include:

• Dried flowers and oils: The traditional basis of the market, used for both recreational and medicinal consumption.
• Edibles and infused drinks: These include chocolates, gummies, cookies and non-alcoholic drinks, with growing popularity among consumers who prefer to avoid smoking.
• Wellness products and cosmetics: creams, lotions, body oils and skin and hair care products, highlighting the potential of cannabis in the beauty industry.
• Capsules and concentrates: Aimed at the medicinal public seeking precise dosage control.
• Veterinary products: Items aimed at animal welfare, especially for controlling pain and anxiety in pets.

Diversified consumption has driven innovation and economic growth, with Canada emerging as a hub for cannabis product development. Canadian companies are leading the development of new products, exploring niche markets and expanding internationally. The sector has attracted significant investment, fostering entrepreneurship and generating jobs in areas such as research, product development, marketing and logistics.

6. Challenges and Adjustments in Legalization Policy

Despite progress, Canada has faced significant challenges in implementing the legalization of cannabis:

• Persistence of the illegal market: Although reduced, the illegal market continues to compete with the legal one, especially due to lower prices and greater accessibility in some regions.
• Regulatory barriers for small producers: Many small businesses face difficulties in complying with strict regulatory requirements, limiting their competitiveness against large corporations.
• Regional inequalities: Decentralized regulation has resulted in disparities in product availability and access, depending on the province.
• Public health issues: Challenges related to increased use in some age groups and the continued need for education and awareness programs on responsible use.
• Export difficulties: Regulatory restrictions and trade barriers make international expansion difficult for some Canadian producers.

These challenges highlight the importance of a flexible and adaptive approach to public policy-making. Continuous learning and the ability to adjust regulation have been key to the success of legalization in Canada. The Canadian government continues to review and adjust policies to balance economic growth with protecting public health and controlling the illegal market.

7. What Brazil Can Learn from the Case of Canada

7.1 Similarities and Differences

Brazil can adapt Canada’s lessons, taking into account its cultural and economic specificities. The potential for job creation and revenue is significant. In Canada, the legal cannabis sector has created more than 151,000 direct and indirect jobs and generated more than CAD 15 billion in tax revenue since legalization(Sechat). Brazil, with its robust agricultural economy, could surpass these figures due to its favorable climate and vast territorial extension.

Although the socio-economic and cultural contexts are different, the Canadian case offers valuable insights into how to structure a cannabis regulation policy in an effective and sustainable way. The decentralization of regulation, for example, has allowed Canada to adapt regional policies to meet local needs, an approach that could benefit Brazil, considering its regional diversity.

7.2 Opportunities for Brazil

Regulation could benefit sectors such as health, agriculture and industry, as well as reducing the impact of organized crime. The Brazilian medical cannabis market is already showing growth, with a significant increase in the number of patients using cannabis-based products, estimated at more than 100,000 patients by 2023 (Anvisa).

Brazil has immense agricultural potential, which could be used to grow cannabis on a large scale, contributing to economic development and job creation. Studies indicate that regulating cannabis could generate more than 300,000 direct and indirect jobs in Brazil and billions in tax revenue, as well as boosting adjacent sectors such as pharmaceuticals and biotechnology.

7.3 Help Boost Brazil’s Regulation, Supported by Good Practices with Kanna

Kanna can play a key role in advancing cannabis regulation in Brazil, promoting good practices based on evidence and the success of countries like Canada. The Kanna protocol is a powerful tool to help regulate and map the cannabis production chain, providing greater transparency and security for investors, producers and consumers.

Kanna’s protocol allows complete traceability of production, from cultivation to the end consumer, ensuring compliance with regulatory standards and facilitating quality control. In addition, it can support the development of public policies by providing accurate data on cannabis production and consumption in Brazil, which is crucial for effective and sustainable regulation.

Through Kanna, Brazil can establish a legal cannabis ecosystem based on international best practices, promoting innovation, sustainability and economic development, while protecting public health and combating the illegal market.

8. Conclusion

The case of Canada shows that the legalization of cannabis can have a positive impact on various sectors, from the economy to public health. Brazil has a unique opportunity to learn from this experience in order to implement an effective and sustainable regulatory policy.

By adopting an evidence-based approach adapted to the local reality, Brazil can reap the benefits of cannabis legalization, promoting economic development and social well-being.

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1. introduction

The challenges of the medical cannabis market

The medical cannabis market still faces significant challenges that limit its growth and adoption. Among the main problems are the lack of standardization in access to medicines, regulatory bureaucracy and distrust about the origin of the products. This creates an unstable environment both for patients who need treatment and for producers seeking to operate within the rules.

Currently, a patient wishing to obtain medicinal cannabis in Brazil goes through a long and complicated process, facing obstacles from the medical prescription to the purchase of the drug. What’s more, there is no reliable system to guarantee the traceability of the product, the authenticity of the prescription and regulatory compliance.

The solution: ID Kanna

The question that remains is: how can we guarantee a reliable, safe and transparent system for patients, doctors and producers?

The answer may lie in ID Kanna, a blockchain-based digital identity that is under development and aims to transform the sector by creating a secure, decentralized ecosystem where patients, doctors, suppliers and regulatory bodies can operate with trust and transparency. ID Kanna is not just a registry, but a complete technological solution for organizing and legitimizing access to medical cannabis in Brazil.

In this article, we’ll explore what ID Kanna is, how it solves the industry’s main challenges, and why it could be the government’s official solution for regulating medical cannabis.

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2. What is ID Kanna and how does it solve these problems?

The Kanna ID will be a digital patient identity (NFT), stored on blockchain, which will allow secure and transparent onboarding in the medical cannabis ecosystem. It works like a digital card, but with a crucial difference: it uses decentralized technology to guarantee authenticity and regulatory compliance.

Kanna ID’s main features:

• Validated and secure patient registration: The Kanna ID certifies that the patient has undergone a legitimate prescription process and meets legal criteria.
• Integrated purchase history and medical information: All data is stored securely and accessible to the patient, doctors and suppliers only with the patient’s approval.
• Easier access to medicines and prescriptions: With the Kanna ID, patients can obtain products without going through unnecessary bureaucratic hurdles.
• Ensuring legal compliance when disposing of products: Kanna ID tracks the origin and destination of the medicine, preventing detour and guaranteeing correct use.

Differential: full traceability of the product journey

With ID Kanna, it will be possible to follow the entire journey of the product, from its origin (producer and laboratory), through distributors and carriers, to the end patient. This guarantees security, transparency and trust in the sector.

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3. Kanna ID Technology: Security and Reliability

The great thing about the Kanna ID will be its blockchain-based technological infrastructure. It uses a decentralized validation model, similar to Kanna’s ESG protocol, to ensure that all information is verified and stored securely.

Decentralized validation and certification

The validator system certifies essential information such as:

• Valid, notarized prescription.
• CRM of the prescribing doctor.
• KYC (know your customer) of the patient.
• Prescription items.
• Clinical history for cultivation authorization purposes.

With this model, ID Kanna creates a system of trust that prevents fraud and ensures that only qualified patients have access to regulated products.

Privacy and user control

Unlike centralized systems, in ID Kanna, the patient has complete control over their data. They decide how and with whom to share information, guaranteeing security and regulatory compliance.

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4. How can ID Kanna become the official government solution?

The importance of cannabis cards in regulated markets

In countries where cannabis is regulated, possession of an official card is mandatory for medicinal patients. Examples include:

• USA: Medical Marijuana Card.
• Canada: Cannabis Card.
• Europe: National registers for medicinal use.

In these places, the identification system facilitates the control and supervision of cannabis use, ensuring that only approved patients have access to the products.

How can Kanna ID be adopted by the Brazilian government?

Currently, Brazil does not have a national certification system for medical cannabis patients. This creates regulatory challenges and opens up loopholes for fraud and the underground market.

ID Kanna solves this problem by positioning itself as the first decentralized digital identity for medical cannabis patients in Brazil.

• Benefits for the government:
  • Reliable monitoring of the production and consumption of medicinal cannabis.
  • Facilitating inspection and compliance with regulatory standards.
  • Reducing the illegal market and controlling the destination of products.
• Strategic partnerships:
  • Kanna is already connected with market players and institutions that can help regulate the sector.
  • Adopting Kanna ID as an official solution could be an essential step towards creating robust and transparent regulation.

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5. The future of ID Kanna and the evolution of the ecosystem

Expanding certification and traceability

The next steps include integrating ID Kanna with new players in the production chain, including:

• Producers and laboratories.
• Transport companies and distributors.
• Specialized clinics and pharmacies.
• Regulators and inspection bodies.

With this advance, ID Kanna will be able to record the entire product cycle, from production to final disposal by the patient.

Financial integration: Kanna ID as a means of payment

ID Kanna will not only offer an identification and certification system, but will also integrate innovative financial solutions to facilitate the patient experience and improve the efficiency of the ecosystem.

• KNN token wallet: ID Kanna will feature a digital wallet where users can store and use KNN tokens for different transactions within the platform.
• Digital payments: Patients will be able to use their KNN tokens to pay for medicines, medical appointments and services within the ecosystem, ensuring an agile and secure process.
• Benefits and rewards: ID Kanna will be able to offer exclusive advantages to its users, such as discounts at pharmacies and associated clinics, creating a sustainable model for encouraging the regulated use of medical cannabis.

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Conclusion

The regulation of medicinal cannabis in Brazil needs a modern, reliable and transparent solution. ID Kanna is that solution. It creates an ecosystem where patients, doctors, producers and the government can operate safely and confidently.

The adoption of the Kanna ID as an official regulatory tool can boost the growth of the sector, attract investors and guarantee a sustainable and safe market for all involved. Now is the time to transform the way Brazil treats medical cannabis. Kanna is ready to lead this revolution.

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1. introduction

Imagine a world where anyone can invest in real assets, such as real estate, carbon credits, works of art or commodities, without bureaucracy and with total transparency. This future is already being shaped by Real World Assets (RWAs), real-world assets that are being tokenized on the blockchain, allowing for greater accessibility, liquidity and investment efficiency.

RWAs are revolutionizing the financial market, bringing security and innovation to sectors traditionally dominated by big players. But what makes these assets so attractive? And more importantly: how does KNN, Kanna’s token, fit into this scenario?

In this article, we’ll explore the potential of RWAs, the impacts of tokenization on the financial market and how KNN can be considered a Real World Asset, bringing innovation to ESG certification, tracking the cannabis production chain and, in the future, the carbon credit market.

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2. What are RWAs and why are they gaining so much attention?

Real World Assets (RWAs) are physical assets that have been digitized and represented by tokens on the blockchain. These assets can include:

• Real estate (tokenized properties that can be split up and traded by investors);
• Commodities (gold, diamonds, oil and other tangible goods);
• Works of art and collectibles (paintings, sculptures and other items of cultural value);
• Carbon credits (financial instruments that compensate for carbon emissions);
• ESG certificates (audited data that guarantees the sustainability of a business operation).

Why are RWAs growing so much?

With the advance of blockchain and Web3, RWAs have been gaining ground because they bring..:

• Greater liquidity – Tokenization allows physical assets to be traded globally, without intermediaries.
• Transparency and security – All transactions are recorded on the blockchain, reducing fraud.
• Accessibility – Investors can acquire fractions of assets that were previously inaccessible due to their high initial value.
• Regulatory efficiency – Blockchain ensures compliance with audits and regulations, increasing investor confidence.

According to CoinGecko, the RWA sector was worth more than US$3 billion in 2023, and the forecast for the coming years is for exponential growth, especially with the entry of major financial players.

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3. How does the tokenization of physical assets impact the financial market?

The financial market has always been dominated by intermediaries and bureaucratic processes. However, the tokenization of physical assets is changing this dynamic by enabling direct, faster and more accessible transactions.

Transformation in Property and Investment

Traditionally, investing in physical assets requires large financial contributions and complex processes. Tokenization allows anyone to invest in fractions of valuable assets, democratizing access to investments previously exclusive to large institutions.

Sectors most impacted by tokenization

• Real estate – Companies like RealT have already tokenized real estate, allowing investors to buy small parts of properties and receive proportional returns.
• Commodities – The Diamond Standard Fund tokenized diamonds, making them an asset accessible to ordinary investors.
• Carbon credit market – Companies have been using blockchain to create digital certificates that guarantee the offsetting of CO₂ emissions.
• ESG Certification – With the growing demand for environmental responsibility, the tokenization of sustainability certificates is gaining momentum.

Tokenization not only brings liquidity to physical assets, but also improves transparency, reduces transaction costs and increases regulatory security.

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4. KNN as a Real World Asset (RWA)

KNN, Kanna’s token, is an RWA because it is directly linked to real-world assets. Its tokenization model is based on ESG certification and, in the future, the tokenization of carbon credits.

What makes KNN an RWA?

• Tokenization of ESG Certificates – Kanna audits and certifies the cannabis production chain, ensuring that producers comply with good environmental, social and governance practices.
• Tokenization of Carbon Credits – In the future, KNN will serve as a ballast for carbon credits, ensuring that each token represents a validated unit of environmental impact.
• Compliance and security – The use of blockchain technology ensures that ESG data is transparent, auditable and reliable.

The ESG industry has been facing challenges with the credibility of sustainability reports. Blockchain solves this problem by guaranteeing immutability and traceability in certification processes.

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5. Valuation and Market Potential

RWAs have been growing exponentially in recent years, driven by the adoption of blockchain and the growing demand for digital assets backed by real-world assets.

Data and projections on RWAs

• Market capitalization – The RWA tokenization sector was valued at $118.6 billion in September 2024, with projections indicating that it could exceed $10 trillion by 2030 ([Source: Roland Berger]).
• Growing adoption – Large financial institutions and industry players are embracing tokenization, making this market even more robust and secure.
• Google Trends – Interest in “Real World Assets” has grown by +150% in the last two years, reflecting a significant increase in searches for these assets.

Source: Roland Berger report estimates that the Real World Assets (RWAs) tokenization market could exceed $10 trillion by 2030. In addition, Lexology reported that in September 2024, the RWA market was already valued at approximately $118.6 billion.

KNN can benefit from this trend , as it combines ESG, blockchain and an emerging market, characteristics that boost its valuation potential. In addition, its integration with carbon credits and ESG certifications aligns with the sustainable practices that are becoming a fundamental requirement for institutional investors and global corporations.

With its combination of low market capitalization, a fast-growing sector and a sustainable economic model, KNN is positioned as a unique opportunity for visionary investors who want to get in early on a market with high upside potential.

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6. Opportunity for Investors

Experienced investors know that the best returns come from well-founded assets that are still in the growth phase. KNN offers:

• Experienced and connected team
• Strategic partnerships
• Real utility and growing adoption
• Innovative model and sustainable tokenomics
• Low market cap and high potential for multiplication

With a market cap below $50,000, KNN represents a unique opportunity for appreciation. Those who get in early will be able to take advantage of exponential growth as the ecosystem expands.

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7. Conclusion

RWAs are revolutionizing the financial market and KNN is one of the most promising assets within this ecosystem. By combining ESG certification, blockchain and tokenization of carbon credits, KNN creates a model with real impact and substantial appreciation potential.

Now that you understand the potential of KNN as an RWA, the question arises: are you going to wait for the market to recognize this value or are you going to seize this opportunity now?Buy your KNNs on the Bitcoin Market or directly on the Kanna platform and be part of this revolution!

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1. introduction

Industrial hemp is becoming one of the most versatile and sustainable commodities of the 21st century. Used in a variety of industries, from construction to the production of bioplastics, it represents a viable and environmentally friendly alternative to replace highly polluting traditional materials.

In addition to its economic impact, hemp stands out for its role in environmental mitigation, absorbing large amounts of CO₂ from the atmosphere and requiring few chemical inputs for its cultivation. The increasing global regulation of hemp opens doors to new markets, and Brazil has the potential to become a leader in this sector. In this article, we explore the main applications of industrial hemp and how it can revolutionize various production chains.

2. What is Industrial Hemp?

There are different theses on how to classify cannabis as industrial hemp, ranging from controls on THC levels to the composition of the fibers and handling:

Unlike marijuana, hemp has a very low concentration of THC and is grown for industrial applications. With an ancient history of use, it was widely used in the production of paper, fabrics and ropes before it was banned in many countries. Today, the reintroduction of hemp into industries is driving innovation and sustainability.

In addition to being highly productive, hemp grows quickly and can be cultivated in a variety of climatic conditions. Its versatility makes it a promising raw material for multiple sectors, bringing both environmental and economic benefits.

3. Applications of Industrial Hemp in Different Sectors

3.1. Indústria Têxtil

Hemp has been rediscovered in the textile industry for its extremely resistant and biodegradable fibers. Compared to cotton, hemp:

• Uses up to 50% less water for cultivation.
• No need for aggressive pesticides.
• It has a more durable and wear-resistant fiber.

Clothes made from hemp offer comfort and breathability and are an excellent alternative for sustainable fashion. Eco-fashion companies have adopted hemp as an innovative solution, reducing the environmental footprint of textile production.

3.2. Construção Civil e Biocompósitos

In the construction industry, hemp stands out for the production of hempcrete, a material composed of hemp fibers, lime and water. It has advantages such as:

• Superior thermal and acoustic insulation.
• Absorption of CO₂ over time, reducing the carbon footprint.
• Fire resistance and durability.

Hempcrete is already widely used in Europe as a sustainable substitute for traditional materials such as concrete and bricks, promoting more ecological and efficient construction.

3.3. Alimentação e Cosméticos

Hemp seeds are rich in protein, essential fatty acids (omega-3 and omega-6) and fiber. They can be eaten in a variety of ways:

• In salads, yogurts and smoothies.
• As an ingredient in protein bars.
• In the production of hemp oil for cooking.

In the cosmetics sector, hemp oil is used for its moisturizing and anti-inflammatory properties. Hemp-based creams, shampoos and lotions have become popular as natural alternatives for skin and hair care.

3.4. Papel e Bioplásticos

The paper industry can benefit immensely from hemp:

• It can be recycled more often than traditional cellulose paper.
• Its rapid growth reduces the need for deforestation.
• It produces stronger and more durable fibers.

In addition, hemp-based bioplastics are a promising alternative to petroleum-based plastics. These biodegradable materials can be used in packaging, disposable utensils and even components for the automotive industry.

3.5. Biocombustíveis e Energia

Hemp biomass can be converted into biofuels such as biodiesel and ethanol, providing a renewable alternative to fossil fuels. Its advantages include:

• High energy efficiency.
• Reducing the carbon footprint.
• Sustainable cultivation without severe impacts on the environment.

3.6. Fitorremediação e Agricultura Sustentável

Hemp has an incredible ability to decontaminate polluted soils, absorbing heavy metals and toxins. This process, called phytoremediation, has already been used in areas contaminated by nuclear disasters and industrial pollution.

In addition, its natural resistance to pests and diseases reduces the need for pesticides and herbicides, making it an ideal crop for regenerative farming systems.

4. Impact of Regulation and Opportunities for Brazil

4.1. Benefícios Econômicos e Expansão do Mercado

The enormous versatility of industrial hemp not only drives a variety of sectors, but also represents an engine of economic growth. Regulating this market could result in the creation of thousands of direct and indirect jobs, as well as fostering innovation and entrepreneurship in various industries.

In addition, by facilitating the development of new sustainable products and technologies, regulation can attract investment and boost tax revenues. Countries that have legalized hemp cultivation have seen a significant increase in job creation, tax revenue and a reduction in dependence on non-renewable raw materials.

If you want to delve even deeper into the economic impacts of regulating cannabis and industrial hemp, check out our previous article on the subject.

4.2. Oportunidades para o Brasil

The regulation of hemp in Brazil could turn the country into a world leader in this market. Countries that have already legalized hemp cultivation have seen significant growth in job creation and tax revenue. Brazil, with its vast territory and favorable climate, has the potential to become a major exporter of industrial hemp.

Studies show that regulation could generate billions in annual revenue, as well as strengthening sectors such as agriculture, biotechnology and construction. The acceptance of hemp as a strategic commodity would bring not only economic but also environmental benefits, reducing dependence on non-renewable resources.

Kanna is positioning itself as a structuring pillar in this production chain, connecting producers, companies and investors to build a regulated, transparent and sustainable market. Advancing regulation can attract investment and encourage the development of new technologies and hemp-based products.

5. Conclusion

Industrial hemp is a commodity of the future, combining sustainability, efficiency and innovation. Its regulation in Brazil could open up a range of new economic and environmental opportunities, consolidating the country as a global leader in the production and export of this valuable resource.

Kanna can play an essential role in this transition by structuring a solid production chain and promoting an innovative ecosystem for the industrial hemp market. The time to invest and position yourself in this sector is coming, and the pioneers will be the biggest beneficiaries of this sustainable revolution.

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Introduction to the Potential of Cannabis

The global cannabis market is projected to reach US$ 69.25 billion by 2029 (Mordor Intelligence, 2024), and emerging markets could be the biggest beneficiaries of this expansion. Countries that have regulated cannabis are already seeing an increase in job creation, technological innovation and tax collection.

But how can you benefit from this growth? In this article, we explore the impact of cannabis regulation, success stories from around the world and the opportunities that may arise in Brazil with the new regulation of the sector.

1. Global Overview of Cannabis

1.1. Crescimento Econômico Mundial

The global cannabis market is projected to reach US$69.25 billion by 2029, with a compound annual growth rate of 15.40% (Mordor Intelligence, 2024). This growth is being driven by the increasing demand for medical cannabis and the development of the hemp industry for industrial and pharmaceutical applications.

1.2. Principais Mercados Emergentes

Countries such as Colombia, Portugal, Morocco and South Africa have made progress in regulating cannabis, creating opportunities for export and strengthening their local economies (Le Monde, 2024). These nations are positioning themselves as production and research hubs, attracting international investment.

Brazil, for its part, has enormous potential to become a global power in the sector. With an ideal climate for growing cannabis, vast agricultural areas and consolidated expertise in agribusiness, the country has all the necessary factors to lead this market.

In addition, 2024 marked a crucial alignment between the STJ and the STF on the cannabis agenda, creating a favorable scenario for the regulation and opening up of this market in the country.

2. Economic and Social Impact of Regulation

The regulation of cannabis has been a watershed in the countries that have adopted this measure. In addition to the medical and industrial benefits, the economic impacts are notable, with GDP growth, increased tax collection and the creation of thousands of jobs.

In the first five years after legalization, several countries registered a significant increase in the sector’s turnover and employability, becoming a benchmark for other emerging markets, such as Brazil.

2.1. Geração de Empregos e Receita

In countries that have legalized cannabis, job creation has been one of the main benefits. In the USA, for example, more than 428,000 jobs have been created in the cannabis industry since the sector was regulated (Leafly, 2024). In Brazil, it is estimated that regulation could generate more than 328,000 direct and indirect jobs (Agência Brasil, 2024).

Country	Year Regulation	Revenue in the 1st Year	Revenue in Year 3	Recipe in 5th grade
Canada	2018	US$ 1.2 billion	US$ 4.2 billion	US$ 7.1 billion
Uruguay	2013	US$ 40 million	US$ 180 million	US$ 320 million
USA (Colorado)	2014	US$ 700 million	US$ 2.6 billion	US$ 5.1 billion
Colombia	2017	US$ 150 million	US$ 600 million	US$ 1.2 billion
Portugal	2019	US$ 50 million	US$ 250 million	US$ 600 million
Germany	2024	US$ 500 million	US$ 2.0 billion	US$ 4.5 billion
Annual growth	–	+80%	+60%	+40%

The data above shows the economic potential that cannabis can generate in regulated markets. For Brazil, the expectation is that, with regulation, the sector could reach billion-dollar figures in the first few years, following the trend seen in other countries.

2.2. Desenvolvimento de Setores Industriais

Regulation is boosting sectors such as pharmaceuticals, textiles and cosmetics. Industrial hemp has applications in bioplastics, construction and sustainable fashion, adding value to emerging economies (Incentea Wide, 2024).

2.3. Questão Cultural e Desestigmatização do Usuário

The legalization of cannabis has also played a key role in destigmatizing its users. Countries that have regulated medicinal and industrial use have seen a change in public perception, reducing prejudice and encouraging the adoption of cannabis-based treatments (Sechat, 2024).

3. Case Studies: Before and After Regulation

3.1. Uruguai

Uruguay pioneered the legalization of recreational cannabis, implementing a government-controlled distribution model. Since then, the country has experienced a series of economic and social benefits.

The cannabis market generated an estimated $320 million in revenue by the fifth year of regulation, as well as creating more than 5,000 direct and indirect jobs.

Another significant impact was the easing of the prison system, reducing the criminalization of users and removing the market from illegal trafficking, which led to a 20% drop in drug-related crime rates (BBC News, 2024).

3.2. Canadá

Since regulation, the cannabis market in Canada has turned over billions of dollars, creating jobs and boosting tax revenues.

In five years, the Canadian cannabis industry has raised more than US$7.1 billion, generating approximately 150,000 jobs and contributing more than US$2 billion in federal and provincial taxes.

In addition, there has been a reduction in the illicit market, with more than 60% of consumers acquiring cannabis through regulated means. The country has also established itself as one of the largest exporters of medical cannabis in the world, expanding its operations to emerging markets such as Europe and Latin America (Government of Canada, 2024).

3.3. Colômbia

Colombia has adopted a regulatory model aimed at exporting medical cannabis, attracting foreign investors and positioning itself as a strategic player in Latin America. The country has seen significant growth in the sector, generating around US$1.2 billion in the first five years of regulation.

Colombian cannabis companies already export to more than 20 countries, and the sector employs more than 25,000 people, mainly in agricultural regions.

In addition, legalization has had positive social impacts, offering economic alternatives to communities that previously depended on the illicit cultivation of the plant, promoting the formalization of the market and reducing conflicts related to drug trafficking (Forbes, 2024).

4. Prospects for Brazil

4.1. Situação Atual

Brazil already has a growing medical cannabis market, with more than 672,000 patients using cannabinoid-based treatments (Sechat, 2024). In addition to medicinal use, it is estimated that thousands of Brazilians use cannabis as adults and recreationally, although without clear regulations. The clandestine market still generates billions of reais annually, highlighting the high demand for the product.

Currently, the country has more than 53 national producers registered with Kanna, who are leading the way in adopting good sustainable cultivation practices. Despite the lack of regulation, this group has been driving the development of a productive ecosystem that could quickly be formalized with appropriate legislation. In financial terms, medical cannabis already generates significant figures, with imports of cannabis-based products growing exponentially in recent years. If there is already this much economic movement in a market that is not yet regulated, we can imagine the impact that effective regulation would have on Brazil.

Brazil already has a growing medical cannabis market, with more than 672,000 patients using cannabinoid-based treatments (Sechat, 2024). The number of medical prescriptions has increased significantly.

4.2. Regulação do Mercado Brasileiro

The year 2024 brought two important milestones for the advancement of cannabis regulation in Brazil. The first was the decision by the Federal Supreme Court (STF), which established a criterion of up to 40 grams for carrying cannabis for personal use, promoting progress in decriminalization and reducing impacts on the prison system. This decision is of great importance in building a more rational approach to the use of the plant, keeping users out of the penal system and reinforcing public health policies.

The second major milestone was the decision by the Superior Court of Justice (STJ), which ruled that Anvisa has six months to present regulations for the cultivation and sale of cannabis in Brazil. This measure creates institutional pressure for the market to be formalized and for Brazil to start integrating the sector in a structured way, opening up space for new investments and economic opportunities.

With the STJ’s decision in November 2024, Anvisa will have up to six months to regulate the cannabis market. This measure could open doors to new investments and consolidate Brazil as one of the main markets for medicinal and industrial cannabis (Agência Brasil, 2024).

4.3. Potencial Futuro

Over the next two years, Brazil should make significant progress in regulating cannabis. The first major step will be regulation by Anvisa, which is expected to present a regulatory framework for the cultivation, production and distribution of medicinal and industrial cannabis in the coming months. This measure could unlock billions in investment and open up a new economic segment in the country.

In addition, a more in-depth debate is expected in the National Congress to create a definitive legal framework for cannabis, addressing not only the medicinal and industrial market, but also the issue of adult use and harm reduction policies. The example of other countries shows that clear and well-structured regulation can generate significant economic benefits, increasing tax collection and reducing the illegal market.

In this scenario, the KNN Token is positioned as a strategic opportunity for those wishing to enter the regulated cannabis market at an early stage. As a digital asset linked to the traceability and certification of the production chain, the KNN has great potential for appreciation as the sector expands and gains institutional recognition.

5. Challenges, Opportunities and Market Participation

With the regulation of cannabis getting closer and closer in Brazil, significant challenges and opportunities are emerging for different sectors of the economy. Regulatory progress opens doors to technological innovations, strategic investments and the active participation of society in this emerging market. However, the realization of these opportunities still depends on factors such as adapting the legal framework and overcoming institutional resistance.

5.1. Barreiras Regulamentares

Although the recent decisions by the STF and STJ represent progress, the implementation of the regulation still faces significant obstacles. Resistance from political sectors, lobbying by industries opposed to regulation and the need for an efficient tax model are all challenges that need to be overcome. International experience shows that a well-structured regulatory model can reduce bureaucracy and create a safe environment for investors and consumers (BBC News, 2024).

5.2. Oportunidades de Inovação

Cannabis regulation not only enables a new market, but also encourages scientific research, the development of new medicines and innovations in the production and distribution of medicinal and industrial cannabis. Advanced cultivation technologies, blockchain for tracking products and new methods for extracting cannabinoid compounds are some of the areas that could benefit from a formalized market. In addition, regulation opens up space for new players and startups to develop solutions that increase efficiency and transparency in the sector (Forbes, 2024).

5.3. Oportunidade de Investimento com o Token KNN

With a formalized market, the demand for traceability and transparency will be fundamental to guaranteeing security for consumers and investors. The KNN Token has emerged as an innovative solution by enabling decentralized certification of the cannabis production chain. As one of the first assets linked to the sector in Brazil, the KNN could increase in value as regulation advances and market confidence grows.

By investing in the KNN Token, participants not only have the chance to benefit from the asset’s appreciation, but also actively contribute to strengthening a sustainable and transparent market. As happened in regulated markets such as Canada and Colombia, the first investors and companies that bet on structuring the production chain reaped the greatest returns.

This is the ideal time to position yourself strategically and participate in the exponential growth of the sector in Brazil.

Conclusion

Cannabis regulation has boosted economies, generating jobs and innovation. Countries that have adopted clear rules have grown significantly and reduced the illegal market. Brazil is at a decisive moment to follow this path and consolidate itself as a global player.

Recent legal advances indicate that structured changes are on the way. With a regulated market, the country can attract billions in investment and strengthen its position in the sector.

The KNN Token represents a strategic opportunity for investors and enthusiasts who want to participate in this transformation and contribute to a sustainable and transparent market.

Bibliographical references

• Agência Brasil, 2024. “Expocannabis shows potential for employment in the plant market.” Available at: https://agenciabrasil.ebc.com.br/saude/noticia/2024-11/expocannabis-mostra-potencial-de-empregabilidade-no-mercado-da-planta
• BBC News, 2024. “Uruguay and the impacts of cannabis legalization.” Available at: https://www.bbc.com/portuguese/articles/cg6wq3l7x1lo
• Forbes, 2024. “Colombia becomes a benchmark in medical cannabis exports.” Available at: https://www.forbes.com.br/negocios/2024/06/colombia-lidera-exportacao-de-cannabis-medicinal
• Government of Canada, 2024. “The economic impact of cannabis legalization.” Available at: https://www.canada.ca/en/health-canada/services/drugs-medication/cannabis/economic-impact.html
• Le Monde, 2024. “Legal cannabis: Morocco sets course for the European market.” Available at: https://www.lemonde.fr/afrique/article/2024/07/09/cannabis-legal-le-maroc-se-lance-dans-la-course-au-marche-europeen_6248260_3212.html
• Mordor Intelligence, 2024. “Global Cannabis Market Report.” Available at: https://www.mordorintelligence.com/industry-reports/cannabis-market
• Sechat, 2024. “Medical cannabis market and technology adoption in an emerging market.” Available at: https://sechat.com.br/noticia/mercado-de-cannabis-medicinal-e-adocao-de-tecnologias-em-um-mercado-emergente
• Incentea Wide, 2024. “Medical cannabis: global market trends on the rise.” Available at: https://www.incentea-wide.com/pt/newsitem/cannabis-medicinal-tendencias-do-mercado-global-em-ascensao-381**
• Agência Brasil, 2024. “Expocannabis shows potential for employment in the plant market.”
• BBC News, 2024. “Uruguay and the impacts of cannabis legalization.”
• Forbes, 2024. “Colombia becomes a reference in the export of medicinal cannabis.”
• Government of Canada, 2024. “The economic impact of cannabis legalization.”
• Le Monde, 2024. “Legal cannabis: Morocco sets course for the European market.”
• Mordor Intelligence, 2024. “Global Cannabis Market Report.”
• Sechat, 2024. “Medical cannabis market and technology adoption in an emerging market.”
• Incentea Wide, 2024. “Medical cannabis: global market trends on the rise.”

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