Kalshi is rolling out a new set of compliance measures designed to curb insider trading and market manipulation across its prediction markets.
The company said the changes take effect immediately and come from recommendations made by its independent Surveillance Audit Committee. This combines contract risk assessments, employment disclosure requirements for some traders, and expanded reporting channels intended to surface suspicious activity more quickly.
Under the updated system, Kalshi will evaluate markets and assign risk scores to contracts that may be more susceptible to insider information or other misconduct. The ratings, they say, will help determine when additional checks are necessary before users can participate.
For certain higher-risk markets, traders may be required to provide employment information before gaining access. Kalshi said the purpose is to identify people who could possess material, non-public information connected to a market’s outcome before any trades occur.
The company says these additions build on controls already in place, including customer identification procedures and continuous monitoring of trading activity.
“Market integrity is a more than just a lofty goal for us. It’s the reason we collect identification info from every trader, why we surveil our markets 24/7, and why we continue to expand our capabilities to prevent, detect, and punish misconduct,” Robert DeNault said in a statement announcing the changes.
Prediction markets let users trade contracts tied to the likelihood of future events. That structure can create challenges when a small group of people may know important information before it becomes public, making surveillance and enforcement a central issue for market operators.
Kalshi adopts employment verification and whistleblower tools amid insider trading concerns
Alongside the employment disclosure requirement, Kalshi is extending its whistleblower program. Users will now be able to submit reports directly from market pages, giving traders a simpler way to flag activity they believe deserves closer review.
According to the company, the updated intake process is intended to collect tips efficiently and route them for investigation. Kalshi says combining those reports with its new risk-scoring framework should improve its ability to spot unusual trading patterns and react faster when concerns emerge.
The announcement follows earlier integrity-related actions reported by ReadWrite. This included tighter restrictions aimed at reducing insider-trading risks involving politicians and athletes, as well as enforcement actions against three political candidates connected to election-market betting activity. The company has also faced questions from regulators and critics about how prediction markets should monitor and police trades involving potentially privileged information.
Kalshi framed the latest measures as part of a broader push to strengthen confidence in its platform and the prediction-market industry more broadly.
“The work is never done, but we are proud to mark yet another big step today in leading the prediction market industry on the issue of integrity,” DeNault said.
The company said the new employment checks, market assessments and reporting tools are meant to reduce conflicts of interest, limit opportunities for misconduct and help preserve fair trading conditions.
Featured image: Kalshi via press release
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