The prediction market Kalshi is taking a major step to clean up its platform by requiring users to disclose their employment information for certain trades. As scrutiny of the industry grows, the U.S.-regulated exchange is rolling out these new “Know Your Customer” measures to stop individuals from using private information to gain an unfair edge. These changes come as part of a broader effort to maintain integrity in markets that have recently faced intense pressure from regulators and the public alike.
The new policy will specifically target markets that carry a heightened risk of insider trading. Starting in the coming weeks, Kalshi will assign a risk score to new markets. If a market is deemed sensitive—such as those involving corporate earnings, national security, or geopolitical events—traders will be required to fill out an online form identifying where they work. By collecting this data, the company aims to identify “presumptive insiders” who might possess material, nonpublic information before a trade is even placed.
This shift follows a series of high-profile controversies that have rocked the prediction market space. Recently, former Congressman George Santos faced an investigation over allegations of illegal betting regarding his attendance at the State of the Union address. Earlier this year, Kalshi itself took disciplinary action against an employee of YouTuber MrBeast, who was caught trading on nonpublic information related to the creator’s videos. In that instance, the user was fined and suspended for activities that undermined the platform’s fairness.
The company has already shown it has teeth. In one notable case, an individual was penalized $20,398—a figure roughly five times the size of their original trade—after being caught violating exchange rules. Kalshi reports that its existing surveillance tools have already stopped at least 100 potential insider trades. By adding employment disclosure to its toolkit, the platform expects to improve its ability to conduct early-stage investigations and deter bad actors who believe they can exploit the system.
While some might wonder if this will fully stop bad behavior, Kalshi’s leadership remains committed to proving that regulated prediction markets can operate with the same rigor as traditional finance. Unlike offshore platforms that often operate outside the reach of U.S. law, Kalshi maintains that it is fully regulated by the Commodity Futures Trading Commission. The platform’s compliance department continuously monitors for unusual activity, and this new rule is a direct response to recommendations from its own audit committee, which includes experts like the former Treasury undersecretary.
Ultimately, Kalshi is betting that these transparency measures will bolster user trust. As the company continues to grow, it faces the constant challenge of staying ahead of those who try to bend the rules. Whether it is a $1 billion industry or a niche market, the core principle remains the same: for these platforms to succeed in the long run, they must ensure a level playing field where no single participant has an unfair, secret advantage.
