Banks in Ghana Issue Caution Regarding "YellowPay" and "HanyPay" Apps
The Bank of Ghana (BoG) has issued a warning to the public and financial institutions, advising against using the digital payment platforms YellowPay and HanyPay. The central bank's statement, issued on June 11th at 9:50 pm, highlights that these platforms have failed to comply with BoG's regulations, specifically by not registering as Virtual Asset Service Providers (VASPs) as required under Ghana's regulatory framework for crypto and digital payment services.
The regulatory issue at hand is that under recent BoG directives, all digital payment platforms and crypto-related services operating in Ghana must register as VASPs to ensure regulatory oversight, consumer protection, and compliance with anti-money laundering laws. YellowPay and HanyPay have not fulfilled these registration requirements, making their operation illegal or unauthorized under Ghanaian law.
BoG is urging the public and all financial sector players to cease engagement with HanyPay immediately, citing the operation of both platforms as a regulatory breach. The warning pertains to YellowPay and HanyPay specifically, and the BoG's statement is a public one.
YellowCard Financial Inc., the company behind YellowCard, has responded to the BoG's statement, but no further details about the response have been disclosed. HanyPay, on the other hand, claims ties to the Africa Diaspora Central Bank (ADCB), an entity not recognized by the BoG. It's worth noting that the BoG does not license or recognize HanyPay or ADCB.
YellowPay and HanyPay offer cross-border payments, stablecoin transactions, and remittance services. HanyPay is also developing a new stablecoin, AKL Lumi, intended for integration into the global financial system. However, any activity involving HanyPay is considered unauthorized by the BoG, and engaging with these platforms carries risks, including potential loss of funds or fraud, since they are not regulated or supervised by the central bank.
The BoG's warning against YellowPay and HanyPay remains in effect, and the public is advised to avoid using these platforms to protect consumer interests and financial security. It's crucial for all parties to adhere to the BoG's regulations to ensure a secure and transparent digital financial ecosystem in Ghana.
- The central bank's regulatory framework for crypto and digital payment services in Ghana requires all operating platforms, such as YellowPay and HanyPay, to register as Virtual Asset Service Providers (VASPs) to ensure compliance with anti-money laundering laws and consumer protection.
- TheBoG's warning, issued on June 11th, emphasizes that YellowPay and HanyPay have failed to register as VASPs, making their operations illegal or unauthorized under Ghanaian law.
- The BoG's warning regarding the unauthorized operation of YellowPay and HanyPay serves to underline the importance of adhering to financial regulations in the technology-driven world of business, investing, and general-news, especially in the realm of digital finance and cross-border payments.
