Bank of Ghana's Public Announcement Prompts Response from Yellow Card
In a recent turn of events, Yellow Card Ghana Limited, a subsidiary of the international digital currency company Yellow Card Financial Inc., has strongly denied any connection to Yellow Pay, a USD stablecoin service that has been mentioned in a public notice issued by the Bank of Ghana (BOG).
The BOG, in a notice issued on June 11th, cautioned the public against unlicensed digital platforms, specifically naming Yellow Pay. This notice followed stricter regulations implemented by the BOG requiring all crypto companies to register officially, a move that could impact any cryptocurrency-related services operating in Ghana, including potential unlicensed platforms.
In response, Yellow Card Ghana Limited, incorporated in 2020, issued a strongly worded statement denying any involvement with Yellow Pay or HanyPay, a third-party firm. Craig Stoehr, Yellow Card's General Counsel, expressed his disappointment that the BOG published the notice regarding Yellow Card and HanyPay, stating that it is unfortunate.
It is important to note that Yellow Card never signed any agreement or processed transactions with HanyPay. Furthermore, the company never collaborated with HanyPay to develop or integrate the "AKL Lumi" stablecoin.
Yellow Card Ghana Limited's denial comes after an onboarding attempt by HanyPay in late 2024 was abandoned. The subsidiary has also clarified the situation publicly on June 5, following a request by the Bank of Ghana.
Despite the recent misinformation, Yellow Card remains supportive of digital asset regulation in Ghana. The company welcomed the BOG's draft digital asset guidelines (August 2024) and has expressed its support for upcoming regulatory frameworks expected by September.
Yellow Card Financial Inc. is known for its operations in multiple African countries, focusing on stablecoin-based payments and compliance within the regulatory frameworks of those countries. The company's subsidiary in Ghana, Yellow Card Ghana Limited, is registered for reporting purposes with the Financial Intelligence Centre, Ghana, and is also registered with Ghana's Data Protection Commission, under the Data Protection Act, 2012 (Act 843).
It is essential to clarify that Yellow Card Ghana Limited has no involvement with Yellow Pay, as stated by the company. The ongoing situation serves as a reminder for all digital currency companies to adhere to the regulatory requirements set by the Bank of Ghana.
The BOG's notice on June 11th specifically cautioned the public against unlicensed digital platforms, including Yellow Pay. Amidst this, Yellow Card Ghana Limited, a subsidiary of the compliance-focused digital currency company Yellow Card Financial Inc., affirmed its separation from Yellow Pay and any business or financial ties with them, as they operate within the banking and insurance industry.
