StarkWare and Sui this week launched new privacy features that allow users to hide transaction data without completely sacrificing auditability or regulatory oversight.
StarkWare announced Tuesday that it has launched STRK20, a privacy framework for ERC-20 tokens on Starknet. This will allow users to protect their balances and transaction data while providing a mechanism for disclosure under certain circumstances.
StarkWare co-founder and CEO Eli Ben Sasson told Cointelegraph that “compliance-ready” does not mean that STRK20 itself determines compliance or guarantees regulatory approval. He said the framework is built around a risk-based model where privacy is conditional rather than absolute, with screening applied upon admission to shielded pools and access key-based disclosures enabled in response to legal requests.
Separately, Sui has launched a public beta version of confidential money transfers. This feature hides transaction amounts while allowing authorized parties to access the information if needed for audit or compliance purposes.
These announcements reflect a broader shift in crypto privacy from complete anonymity to an institution-preferred model that incorporates auditing and disclosure mechanisms.
Sui begins the confidential transfer. Source: Sui
Compliance changes in privacy systems
In recent weeks, privacy-focused projects have been forced to address issues of both surveillance and trust.
Blockchain privacy project Zama announced on June 2nd that it is accelerating its compliance roadmap. The announcement comes after a court-ordered freeze of approximately $12.5 million. $USDC kept confidential $USDC The rapper was later released after the underlying legal claims were resolved.
The project subsequently highlighted its disclosure mechanisms and approach to regulatory coordination of cryptocurrency transactions.
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This broader push also comes as one of the cryptocurrency industry’s most prominent privacy projects is under new scrutiny after Zcash revealed a bug that raised concerns that counterfeit tokens could be created undetected.
Zcash developers said the vulnerability was addressed through an emergency network upgrade completed in early June and no evidence of exploitation has been seen, but the nature of the shielded pool makes it difficult to fully reconstruct transaction history after the vulnerability is disclosed.
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