StarkWare and Sui this week launched recent privacy features that allow users to hide transaction data without completely losing control and regulatory oversight.
StarkWare said Tuesday that it has launched STRK20, a privacy platform for ERC-20 tokens on Starknet that allows users to protect balances and transaction data while providing disclosure mechanisms in certain circumstances.
Eli Ben-Sasson, co-founder and CEO of StarkWare, told Cointelegraph that “compliance readiness” does not mean that STRK20 itself determines legality or guarantees regulatory approval. He said the framework is based on a risk-based model in which privacy is conditional rather than absolute, with controls applied on entry into a protected pool and access key-based information disclosure available upon lawful request.
Separately, Sui fired public beta for confidential transfers, a feature that hides transaction amounts while allowing authorized parties to access information when required for audit or compliance purposes.
The launches reflect a broader shift in cryptocurrency privacy away from complete anonymity towards institutionally favored models that include auditing and disclosure mechanisms.
Sui launches confidential transfers. source: Sui
Changing compliance in privacy systems
In recent weeks, privacy-focused projects have been forced to address issues related to both governance and reliability.
Zama, a blockchain privacy project, said on June 2 that it would accelerate its compliance roadmap. The announcement followed a court-ordered freeze on approximately $12.5 million in USDC held in a confidential USDC package, which was later lifted following the resolution of an underlying legal challenge.
The project then turned its attention to disclosure mechanisms and approaches to regulatory coordination for encrypted transactions.
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The broader focus also comes after a renewed scrutiny of one of the crypto industry’s most critical privacy projects after Zcash revealed a bug that raised concerns that imitation tokens could have been created undetected.
Zcash’s developers said the vulnerability was patched during an emergency network upgrade completed in early June, with no confirmed evidence of exploitation, although the nature of protected pools makes it complex to fully reconstruct transaction history once the vulnerabilities were disclosed.
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