The privacy push accelerates as StarkWare and Sui launch compliance-ready secret transfers

StarkWare and Sui launched new privacy features this week that allow users to hide transaction data without incurring full audit or regulatory oversight.

StarkWare announced Tuesday that STRK20, a privacy framework on Starknet that allows users to protect balances and transaction data, provides mechanisms for ERC-20 tokens to be disclosed under certain circumstances.

StarkWare co-founder and CEO Eli Ben-Sasson told Cointelegraph that “ready to comply” does not mean that STRK20 itself determines legal compliance or ensures regulatory approval. The framework is built on a risk-based model where privacy is conditional rather than conditional, with filtering on entry into the planting pool and viewing-based disclosure upon legal request.

Separately, Sui has launched a public beta for Secret Transfers, a feature that hides transaction volumes and allows authorized parties to access data when needed for audit or compliance purposes.

The launches reflect a broader shift in crypto privacy toward models favored by institutions that move away from complete anonymity and include auditing and disclosure mechanisms.

Sui initiates secret transfers. Source: Su

Compliance change in privacy systems

In recent weeks, privacy-focused projects have been forced to address questions around both control and reliability.

Blockchain privacy project Zama said on June 2 that it will accelerate its compliance roadmap. The announcement came after a court ordered the freezing of approximately $12.5 million USD that was hidden in the USDC wrapper and later resolved the underlying legal issue.

The project then highlighted its disclosure mechanisms and regulatory coordination approach to encrypted transactions.

Related: Canton, ZKsync approaches how to enforce rules on blockchains

The broader push comes amid renewed scrutiny of one of the crypto industry’s most popular privacy projects after concerns that Zcash fake tokens could have been created undetected.

Zcash developers said the vulnerability was due to an emergency network update completed in early June, although there is no confirmed evidence of an exploit, although the nature of restricted pools makes it difficult to fully reconstruct transaction history after vulnerabilities are disclosed.

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