Japan’s Pot Laws Are Harsh, But Its Pensioners Invest in Growers

Even as much of the world embraces legal pot, Japan is sticking to its long-standing zero-tolerance policies. The country’s ultra-harsh penalties for possession include prison terms as long as five years for the equivalent of a few joints, and in January the government floated a proposal to outlaw THC in the bloodstream, which could make it illegal to use weed during an overseas vacation. The national pension fund, meanwhile, is investing in the stuff.

Financial disclosures show Japan’s Government Pension Investment Fund (GPIF) accumulated stakes totaling some $80 million in at least three pot companies. With 1.7 million shares of Canopy Growth Corp., which trades on the Ontario stock exchange under the ticker WEED, the fund would be among the top 12 holders of the recreational marijuana dealer. Its shares in Cronos Group Inc., a Toronto company that owns pot brands such as Spinach and Happy Dance, are valued at about $17 million. And the $7 million stake it says it held in Aurora Cannabis Inc., which focuses on medical marijuana, would make it a top 10 shareholder. “It’s a complete contradiction,” says Michiko Kameishi, a criminal defense attorney in Osaka who’s represented dozens of defendants in pot cases. “People’s lives get ruined for this.”