Hassan Maishera
TL;DR
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Kalshi now requires traders to disclose their employers before participating in sensitive markets.
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According to the company, the measures take effect immediately following recommendations from Kalshi’s independent Surveillance Audit Committee
Prediction Market Platform Tightens Market Integrity Controls
Prediction market operator Kalshi has unveiled a series of new compliance and surveillance measures aimed at strengthening protections against insider trading and market manipulation on its platform.
The changes, announced Tuesday, include mandatory employment verification for traders participating in certain high-risk markets, an expanded risk assessment framework, and new whistleblower tools designed to help identify suspicious activity.
According to the company, the measures take effect immediately following recommendations from Kalshi’s independent Surveillance Audit Committee, which was established in February to oversee market integrity and enforcement efforts.
At the center of Kalshi’s updated compliance framework is a new market risk-scoring system.
Before a market is listed, Kalshi will evaluate it based on several factors, including regulatory compliance requirements, market significance, insider trading exposure, manipulation risks, and potential national security implications.
The company believes the system will help identify sensitive markets before they launch and allow for additional safeguards where necessary.
“By running an assessment on the national security risk a market might present before we list it, we can better prevent dangerous events from hurting our markets — or vice versa,” said Bobby DeNault, Kalshi’s enforcement and legal counsel.
Employment Verification Required for Sensitive Markets
Kalshi is also introducing mandatory employer disclosure requirements for traders seeking to participate in markets deemed vulnerable to insider information or manipulation.
Under the new policy, users must disclose their place of employment before trading in designated markets. The company says the process enables it to identify and restrict potential insiders before transactions occur.
The approach marks one of the most proactive screening measures adopted by a major prediction market platform as regulators and lawmakers continue scrutinizing the rapidly growing sector.
Kalshi revealed that its compliance systems have already been actively monitoring trading activity.
During the first quarter of the year, the company said it:
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Referred more than 20 cases to law enforcement authorities.
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Conducted over 150 internal investigations.
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Prevented more than 100 potential insider trades through its screening and monitoring tools.
The figures highlight the increasing challenges prediction market operators face as trading volumes continue to grow.
The announcement comes amid heightened scrutiny of prediction markets and concerns about the misuse of confidential information.
Both Kalshi and rival platform Polymarket have increased efforts to detect and prevent market abuse as the industry expands.
In April, U.S. prosecutors charged a soldier accused of using classified information to place bets on Polymarket related to the capture of former Venezuelan President Nicolás Maduro.
A separate case emerged in May when a Google engineer was accused of using confidential company information to place Google-related prediction market trades, allegedly generating approximately $1.2 million in profits.
Kalshi Maintains Lead Over Polymarket
Despite increased regulatory scrutiny, trading activity across prediction markets continues to expand.
Kalshi remained the largest player in the sector during May, recording $16.81 billion in monthly trading volume, up from $14.81 billion in April.
Meanwhile, Polymarket generated $7.08 billion in trading volume during May, down from $9.01 billion the previous month.
The volume figures demonstrate the continued growth and mainstream adoption of prediction markets, even as operators invest heavily in surveillance systems and compliance infrastructure to maintain market integrity.
