Compliance
Privacy at Hinkal is built on a foundation of integrity to ensure it remains a viable solution for regulated entities
Source of Funds Enforcement & Continuous Screening
Hinkal enforces source-of-funds compliance directly at the protocol level through cryptographic guarantees.
Every deposit into Hinkal is assigned a unique depositId, permanently linked to the depositor’s wallet address at the time of deposit.
When a user initiates deposit, private transfer or withdrawal, they must generate a zero-knowledge proof demonstrating that their funds are not associated with any depositId linked to a blacklisted address.
This proof is verified against the current Chainalysis blacklist state, ensuring that compliance checks always reflect the most up-to-date sanctions and risk data.
This creates retroactive protection of the smart contract:
If a depositor address is flagged after funds have entered Hinkal, those funds immediately become ineligible for private transfers
The depositor can only withdraw publicly, back to the original address tied to the depositId
This ensures the resulting transaction flow is fully traceable and auditable
For all non-flagged users, privacy remains fully intact.
The smart contract verifies legitimacy of funds without revealing identity, balances, or transaction history.
As a result, any funds exiting Hinkal’s shielded pool can be treated as pre-verified against the latest compliance standards, providing strong assurances to centralized exchanges, DeFi protocols, and counterparties.
Continuous Re-Screening via Chainalysis
Hinkal integrates directly with Chainalysis for continuous, real-time re-screening of depositor addresses.
This means:
Depositor addresses are automatically re-evaluated as new intelligence, sanctions, or risk signals emerge
No reliance on static “point-in-time” checks at deposit
Compliance status of funds evolves in sync with global regulatory datasets
Selective Disclosure
Hinkal uses a viewing key model that allows users to selectively disclose transaction history to auditors, regulators, or counterparties when required.
This includes:
Full transaction history disclosure
Granular or partial selective disclosure (specific transactions or time ranges)
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