- Kalshi and Polymarket introduce stricter rules to prevent insider trading
- New tools target political figures, athletes, and event participants
- Changes come as U.S. lawmakers push to regulate prediction markets
- Platforms aim to align with traditional financial market standards
New Measures to Prevent Market Abuse
Kalshi and Polymarket are strengthening their compliance frameworks as regulatory scrutiny increases in the U.S.
Kalshi introduced screening tools to block political candidates from trading on their own elections and expanded restrictions to include athletes, coaches, and referees in sports markets.
Polymarket updated its rules to clearly ban trading based on confidential information, illegal tips, or direct influence over outcomes. It also tightened policies around spoofing, wash trading, and front-running.
Shift Toward Proactive Enforcement
Previously, enforcement on these platforms was largely reactive. The new measures aim to prevent violations before they happen by using screening systems and improved monitoring tools.
Kalshi also introduced a built-in whistleblower feature, allowing users to report suspicious activity directly within the platform.
Regulatory Pressure Builds
These updates come as U.S. lawmakers push new legislation to restrict prediction markets, especially those tied to sports and gambling-like activity.
As the sector grows, platforms are moving closer to traditional financial standards in an effort to remain compliant and maintain legitimacy.
