Privacy chains generally fall into two categories - full anonymity or transparent with optional privacy. The first category faces regulatory hostility because you cant prove compliance. The second category doesn’t really solve the institutional privacy problem.
What makes a selective privacy approach different is the nuance. Transactions are confidential by default, protecting business sensitive information. But authorized parties - regulators, auditors, compliance officers - can verify what they legally need to verify through cryptographic proofs.
This isn’t trying to hide from regulation. Its working within regulatory frameworks while maintaining necessary confidentiality. Most privacy chains picked a side in the privacy vs compliance debate. Some platforms recognized these need to coexist for institutional adoption.