Kalshi to make some users reveal job details to tackle insider trading

After issues with insider trading, the prediction betting platform is adding new rules.

Kalshi, a federally regulated prediction market platform, announced it will begin collecting employment information from users trading in high-risk markets to combat insider trading. This decision follows incidents involving illegal trading using confidential information, such as a former U.S. Congressman and a U.S. Army soldier profiting from nonpublic knowledge. Kalshi will assign a risk score to each market; high-risk markets will require additional screening of users' employment details to identify and block those with potential insider access. The platform claims this initiative has already prevented over 100 suspicious trades. It emphasizes that employment data will be used solely for investigation if questionable activity is detected. The move highlights Kalshi’s efforts to distinguish itself from offshore competitors like Polymarket and gain legitimacy in the eyes of regulators and the public. Kalshi has referred at least 20 cases of suspected market manipulation or insider trading to authorities and has established an Independent Surveillance Audit Committee to strengthen market integrity.

Kalshi has implemented a new requirement for users to disclose their employers before trading in contracts flagged as high-risk, aiming to enhance market integrity and prevent insider trading.