Coffeeshops, not to be confused with caf�s, have been a part of Amsterdam since the 1970s, when the Dutch government made a clear distinction in the law between 'hard' and 'soft' drugs. Unlike Amsterdam's fully legal smart shops, coffeeshops have always existed in a legal grey area.

Today, Amsterdam's City Council, through agreement with the coffeeshop union Bond van Cannabis Detaillisten (BCD), allows coffeeshops to operate with the provision of set, non-transferable licences shown by the display of an official, green and white sticker in the window.