Project Tamga: Enabling Cross-Border trust in Regulatory Proofs
As financial systems become increasingly global, verifying regulatory credentials like licenses and attestations across borders presents a meaningful challenge.Currently, these proofs are often limited to the jurisdiction or institution that issued them, hindering the automation of international trust. Both regulators and financial institutions need a reliable and consistent way to validate these proofs irrespective of location.
Project Tamga, an initiative led by the BIS Innovation Hub Hong Kong Center, aims to solve this problem.It proposes a novel approach to cross-border verification that doesn’t rely on creating new centralized registries. Instead, it leverages the existing infrastructure of the internet - specifically established security standards like DNS, HTTPS, and standardized web paths – to build a trust layer.
How it Works:
project Tamga focuses on “trust metadata” – a small, structured set of digital facts essential for verifying a proof, such as public keys and certificate chains. This metadata will be made automatically discoverable through standardized web addresses (well-known paths) hosted on the issuer’s own domain. This allows verifiers to directly access and validate proofs from the source, eliminating the need for intermediaries or centralized databases.
the Benefits:
This approach offers several key advantages:
* Interoperability: Proofs issued using different systems, technologies, and across various jurisdictions can be verified through a single, standardized process.
* Efficiency & Automation: Embedding verifiable proofs into digital workflows allows for real-time compliance checks, automating processes like verifying licensing status and reporting obligations.
* Preservation of Sovereignty: The model respects the confidentiality and control of existing regulatory systems.
* No New Infrastructure: Project Tamga builds on what already exists, avoiding the cost and complexity of creating new platforms or relying on blockchain technology.
Ultimately, Project Tamga isn’t about building new systems; it’s about connecting existing ones and making trust machine-readable, fostering a more efficient and reliable global financial ecosystem.