Selective disclosure as a compliance primitive

What Selective disclosure as a compliance primitive actually says

Supervisory access, external audit and suspicious activity reporting are all bilateral disclosures to a named party under a legal duty. Public-ledger transparency is something else entirely: universal, unauthorised disclosure to everyone, permanently. No other part of the financial system is asked for the second in order to satisfy the first. Viewing keys are the oldest worked example, letting a holder share visibility of shielded activity without surrendering the ability to spend, and they are already used for exchange deposit detection and custodian-to-auditor disclosure. Threshold decryption generalises this to a quorum. Two honest caveats. We found no regulator that has endorsed the pattern in guidance, so this is an argument from structure rather than from authority. And viewing keys are blunt: per address, retrospective and prospective at once, with no revocation once shared.

What this means for confidential transactions

Bubble is built for exactly this shape of obligation: amounts and balances live on chain as ciphertexts, computation happens without decryption, and the only disclosure path is an on-chain access list through which an authorized party - an auditor, a supervisor, a counterparty - can request scoped decryption. That is confidentiality from the public, not from the regulator.