Sui has made a new privacy system available for public testing, allowing token balances and transfer amounts to be hidden while still providing auditors and compliance teams with access. This model, now live on Sui’s Devnet, takes a different approach from traditional privacy coins by maintaining transparency for regulators. The confidential transfers feature encrypts transaction values and wallet balances on the blockchain but leaves sender and receiver addresses, token types, and timestamps visible. Token issuers can enable a confidential mode that conceals balances and transfer amounts, using Twisted ElGamal cryptography on Ristretto255 along with zero-knowledge proofs to verify transactions without revealing underlying values. Mysten Labs, the developer behind Sui, states that the system ensures transfers are valid without overdrafts or unauthorized token creation. The code has been released as open source on GitHub but remains unaudited. Authorized entities can obtain auditor keys to decrypt balances when needed, and issuers can freeze or seize assets under certain conditions. Users can also prove ownership of balances or verify amounts without sharing private keys. This design contrasts with Monero, which hides senders, recipients, and amounts, leading to exchange delistings due to compliance concerns. Instead, Sui’s approach is being tested by firms like Bridge for stablecoin and payment use cases, while TRM Labs and Merkle Science explore transaction monitoring within the encrypted framework. The launch comes after Sui experienced three mainnet outages in late May, raising questions about reliability. Following the announcement, SUI’s price rose nearly 5% to around $0.76, but it remains below key moving averages on the daily chart. On the 4-hour timeframe, the token has rebounded from support near $0.68-$0.70 and is attempting to break a descending channel. The area around $0.80 is a critical resistance level; a breakout could lead to $0.91 and $1.00, while failure may see support at $0.70 and $0.68.