Kalshi Requires Traders to Disclose Employers to Prevent Insider Trading
Kalshi, a leading prediction market platform, has introduced mandatory employment disclosure for traders in sensitive markets. The new rules, effective immediately, aim to curb insider trading and protect market integrity.
New Compliance Measures
Kalshi now requires traders to disclose their employers before participating in high-risk markets. The platform also launched a risk-scoring system that evaluates markets based on importance, regulatory needs, insider trading risk, and national security concerns.
Additional steps include expanded screening, a whistleblower tool for reporting suspicious activity, and stricter oversight. These changes follow recommendations from Kalshi’s independent Surveillance Audit Committee.
Recent Insider Trading Incidents
Prediction markets have faced growing scrutiny after several high-profile cases. These include a U.S. soldier using classified information on Polymarket, a Google engineer profiting $1.2 million from confidential data, and suspicious trades linked to former Rep. George Santos flagged by Kalshi.
In the first quarter, Kalshi made over 20 referrals to law enforcement, conducted more than 150 investigations, and blocked over 100 potential insider trades.
Market Growth and Outlook
Kalshi and Polymarket dominate the prediction market space. Kalshi recorded $16.81 billion in trading volume in May, while Polymarket posted $7.08 billion. These stronger compliance measures help build trust as the industry expands rapidly.
