Crypto infrastructure company Startale Group has selected Sunnyside Labs Privacy Boost as its official privacy partner for the Startale app developed for Soneium, a Sony-affiliated blockchain network.
Startale Group said Tuesday that the integration will add standalone private transfer features to the app, including screened balances, peer-to-peer private transfers and privacy-enhancing payment flows in Soneium.
The move adds a consumer-facing privacy layer to Startale’s Sony-connected Soneium ecosystem, as crypto apps seek to give users more control over observable online activity while maintaining compliance mechanisms for carriers.
Sunnyside Labs co-founder and CEO Taem Park told Cointelegraph that selective auditing means transaction details remain hidden from the public and authorized service operators can view them using a feature called Audit View.
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He compared the system to time-honored finance, where banks can review customer transactions to ensure compliance. “This means that AML and regulatory obligations can be met without requiring all activity to be publicly transparent. This is a fundamentally different architecture from privacy tools that hide transactions from everyone, including the operator,” Park told Cointelegraph.
The project leaves the key question of who ultimately controls access to private transaction data. While Privacy Boost is designed to hide transaction details from the public, its audit view model maintains operator-level visibility to ensure compliance. This means that users rely not only on cryptography, but also on Sunnyside Labs’ controls on when and how protected transaction records can be viewed.
Selective disclosure involves privacy and compliance trade-offs
The audit view model places Startale’s integration in the same category as privacy systems, which seek to hide transaction data from the public while allowing some form of review by trusted or authorized parties.
Zcash, one of the earliest privacy-focused blockchain networks, uses zero-knowledge proofs and support selective disclosure through key traversal. Secret network uses a similar concept for controlling access to shrewd contract private data, with documentation describing viewing keys as encrypted passwords for viewing data associated with a specific shrewd contract and private key.
Examples of applications of selective disclosure of information. Source: TRM Laboratories
Blockchain analytics company TRM Labs he said the Feb. 19 report said transaction view keys provide “strong privacy but poor compliance utility,” particularly for high-value transfers, rapid fund movements, or systemic monitoring.
Privacy Boost’s audit view model appears to take a different approach, giving authorized operators access to private transaction records to ensure compliance. This may make the system more practical for regulated consumer applications, but it also means that information disclosure is not solely controlled by users.
In its findings, TRM Labs concluded that “No single privacy framework meets all stakeholder needs.” However, the company added that the most feasible path may be hybrid approaches combining visibility, access control and restrictions on the conversion of private assets.
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