StarkWare and Sui introduced privacy features this week, allowing users to conceal transaction data while retaining auditability and regulatory oversight.
StarkWare launched STRK20, a privacy framework for ERC-20 tokens on Starknet that shields balances and transaction data but includes disclosure mechanisms for lawful requests.
Eli Ben-Sasson, CEO of StarkWare, highlighted that STRK20 is built on a risk-based model where privacy is conditional, enabling screening at entry and viewing-key-based disclosure.
Separately, Sui released a public beta for confidential transfers, hiding transaction amounts while permitting authorized access for auditing or compliance.
These launches reflect a broader crypto privacy trend moving away from complete anonymity toward models that incorporate audit and disclosure capabilities, favored by institutions.
This shift comes amid heightened scrutiny on privacy projects, following Zama's accelerated compliance roadmap after a court-ordered freeze of $12.5 million in USDC, and a Zcash bug disclosure that raised counterfeit token concerns, later fixed via an emergency network upgrade.