Kalshi said on Tuesday it will require traders to provide employment information before participating in contracts deemed sensitive and has opened a whistleblower portal to collect tips from users. The company described the steps as part of a broader shift toward building institutional-grade market infrastructure and reducing regulatory exposure related to manipulation and insider trading.
The changes take effect immediately and follow recommendations issued by an independent Surveillance Audit Committee that Kalshi established to oversee its market integrity and enforcement program. The committee’s guidance informed a set of measures Kalshi plans to use to detect and deter problematic behavior on its platform.
Under the new framework, Kalshi will assign risk scores to markets using a range of criteria. Those factors include corporate performance metrics, product launch timing, concentration of outcomes, national security implications and the overall potential for manipulation. Markets identified with higher insider or manipulation risk will trigger a requirement to collect employment information from traders before they can trade on those markets.
Kalshi also rolled out new in-platform reporting tools that let users flag suspicious trades directly from market pages. Tips submitted through those tools will be reviewed by a surveillance team that monitors trading activity around the clock.
"By implementing these new integrity measures, we continue to lead the industry on the issue of market integrity amongst federally regulated prediction markets," said Robert DeNault, Kalshi’s head of enforcement. The company emphasized the surveillance team will assess reports and trading patterns as part of its continuous monitoring effort.
The announcement comes amid heightened scrutiny of prediction markets, which let participants trade contracts tied to the outcomes of future events. These platforms have attracted users and capital but have also drawn attention from lawmakers and regulators over possible market manipulation and insider trading.
U.S. federal regulators are investigating whether former congressman George Santos engaged in potential insider trading on the platform, an example cited in coverage of suspicious trading activity that has pressured prediction market operators to strengthen controls.
Kalshi said the suite of measures - mandatory employment disclosures for certain markets, a whistleblower portal and continuous surveillance backed by market risk scoring - are intended to align the platform more closely with regulatory expectations for market integrity and enforcement.
Context note: Kalshi and similar prediction markets have scaled in private capital while operating outside the reporting and listing regimes applied to public equity markets and traditional exchanges. The company framed the changes as designed to bolster trust and reduce regulatory risk going forward.