In the Middle Ages, the Cathar yellow cross was a distinguishing mark worn by repentant Cathars, who were ordered to wear it by the Roman Catholic Church.
Catharism was a religious movement with dualistic and Gnostic elements that appeared in the Languedoc region of France around the middle of the 12th century. Cathars were dualist in their beliefs, and the Catholic symbol of the crucifix was, to the Cathars, a negative symbol. In the words of one 14th century Cathar Perfect Pierre Authié:
...just as a man should with an axe break the gallows on which his father was hanged, so you ought to try and break crucifixes, because Christ was suspended from it, albeit only in seeming.
However, the Yellow Cross may also relate to the Gnostic training in Alchemy. Many Gnostics and Jews carried on the use of Alchemy to symbolize spiritual transformation from leaden, earthy states to an illumined spiritual state or Golden illumination of Spiritual vision. Such Alchemy was widespread in many mystery religions and teachings throughout the ancient world from Persian, Egyptian, Indian, and Chinese Magi. The Magi who visited Jesus at his birth may have been trained in such Alchemical wisdom as well as in Astrology. (See Cathar Texts and Rituals in the Gnostic Society Library.)
The office of the Inquisition was formulated in response to Catharism, and a crusade was ultimately declared against Catharism. To be acquitted of charges of heresy, all a suspected Cathar needed to do was provide proof of marriage (since the Cathars did not believe in the practice). Indeed some Cathars took a vow of celibacy after marriage and their childrearing life or throughout their lives.
Repentant first offenders (who admitted to having been Cathars), when released on license by the inquisition were ordered to:
...carry from now on and forever two yellow crosses on all their clothes except their shirts and one arm shall be two palms long while the other transversal arm shall be a palm and a half long and each shall be three digits wide with one to be worn in front on the chest and the other between the shoulders.