Regulators' real headache isn't privacy itself. What they oppose is the kind of black box operation that is completely inaccessible. This distinction may seem subtle, but it determines the future compliance direction of Web3.

Many privacy coins have been pushed to the fringes as they are blocked by censorship mechanisms. But some projects are rewriting this game and redefining privacy standards in Web3.

People often equate privacy coins with illegal activities, but the institutional market doesn't see it that way. Which investment firm would dare to expose its trading strategies on a fully transparent ledger? All competitors would see everything clearly, even be targeted by quantitative algorithms? That's unrealistic. Institutions need to protect trade secrets while complying with regulations. It seems like a dead end.

The current blockchain ecosystem often faces a dilemma: solutions like Ethereum are fully open, with business information everywhere; some privacy coins aim for complete anonymity, inviting regulatory crackdowns. Is there a third way?

The answer is: auditable privacy. It's not black or white, but a flexible mechanism of "disclosure when needed."

Through the built-in Hedger module, these solutions establish a new compliance framework. You can think of it as a special safe. To outsiders, it is sealed, and transaction details are protected; but the authorized auditing agency can open it at any time to generate compliance reports. Both are achieved simultaneously.