Kalshi to collect employment info from customers trading in some high-risk markets
Kalshi said the new controls are meant to screen presumptive insiders, and it reported more than 150 investigations and over 100 blocked trades this year.
- Kalshi announced Tuesday that it will begin collecting customer employment information for users looking to trade in specific prediction markets flagged for a heightened risk of insider trading.
- The platform will implement a new internal risk-scoring system to evaluate event contracts. If a market scores high for potential manipulation or insider access, users will be required to submit their employment details before they are permitted to trade.
- The data will be used to filter out "presumptive insider traders"—individuals holding material, nonpublic information due to their professional roles—who will be blocked from participating in those specific high-risk markets.
- The policy shift follows a string of high-profile prediction market scandals, including a federal investigation into former Congressman George Santos for allegedly betting on his own State of the Union attendance, and an April case where a U.S. Army soldier used classified intelligence to profit $400,000 on Polymarket regarding military movements in Venezuela.
- The integrity measures aim to solidify Kalshi's regulatory standing as a federally regulated exchange overseen by the CFTC, helping it draw a sharper contrast with offshore, unregulated competitors like Polymarket.
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Kalshi adds required employment verification for some prediction market bets
The CFTC is considering its first regulation for prediction markets, as arrests over "insider trading" on everything from military operations to Google Search data continue to stack up. As CoinDesk reports, a notice of proposed rulemaking says "the proposal would establish a structured framework for evaluating whether such contracts involve an activity enumerated in Section 5c(c)(5)(C) of the Commodity Exchange Act -activity that involves terror…
Kalshi planning to require some participants to identify employers
Kalshi plans to require users in certain markets to share information about their employers in its latest push to crack down on insider trading. The prediction market announced Tuesday that it has created a system to score markets based on the risk of insider trading and manipulation. Those with certain scores will require employment verification.…
Kalshi to Collect One More Piece of Info From Users
Kalshi is getting more personal with its users in a bid to curb insider trading. The CFTC-regulated prediction market plans to make some traders disclose where they work before they can wager on events tied to sensitive, nonpublic information, like corporate performance or national security topics. The policy, based on...
Kalshi will ask its users for information about the type of work they do. The company is doing this to combat abuse of the platform, as insider trading is becoming increasingly common in the prediction market.
Kalshi now requires users to reveal employers as it fights insider trading and market manipulation
The prediction markets platform introduced new measures on Tuesday that it said will apply to markets it considers are likely to face higher risks of insider trading and abuse.
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