Kalshi introduced new compliance measures on Tuesday that will apply to prediction markets it deems at higher risk of insider trading or manipulation.
The prediction market operator said it will now require some users to disclose their employers as part of a broader effort to curb insider trading and improve market integrity on its platform.
The federally regulated exchange explained that the new policy targets contracts considered especially vulnerable to insider activity or abuse, and users may be screened before being allowed to trade in those markets.
The changes take effect immediately and follow recommendations from an independent Surveillance Audit Committee that reviewed Kalshi’s monitoring systems, enforcement framework, and trading controls.
“For higher-risk markets, we now collect employment information before allowing participation,” the company said, adding that the goal is to identify traders who may have access to material non-public information related to an event outcome.
The move comes as prediction markets face rising scrutiny from regulators and researchers. Recent academic work examining Polymarket activity from 2023 to 2025 found that a small fraction of traders accounted for most price movement, while high-profile cases have highlighted alleged insider betting tied to military operations and corporate information.
In response, Kalshi said it blocked more than 100 suspected insider trades in the first quarter alone, opened over 150 investigations, referred more than 20 cases to authorities, and issued several disciplinary actions—though those cases were not independently verified.
Alongside employer disclosure, Kalshi is rolling out a new risk-scoring system that evaluates each market based on manipulation risk, regulatory sensitivity, and broader public interest considerations, with stricter controls or outright rejection for higher-risk listings.
The platform has also introduced whistleblower tools that allow users to report suspicious trading directly within markets, strengthening its surveillance framework as trading activity expands.
According to industry observers, these measures reflect the growing need for formal oversight structures as prediction markets scale. One analyst noted that features like employment checks and risk scoring show the sector is beginning to build the compliance infrastructure required for institutional-level credibility.
