Kalshi will require some users to reveal job details to prevent insider trading. The platform will collect work information from users placing bets that could benefit from insider information.
Key facts
- •Kalshi will collect work information from users placing bets that could benefit from insider information.
- •The rule will apply to 'markets with heightened insider or manipulation risk'.
- •Kalshi made more than 20 referrals to law enforcement of possibly illegal trading activity in the first quarter of this year.
- •A Google employee was charged with insider trading for using company information to place bets on Polymarket, a rival prediction market operator.
- •Kalshi has developed a new risk scoring method to identify betting markets at risk of manipulation or insider trading.
- •The platform will screen out 'presumptive insiders' before a trade is ever placed.
Kalshi, a prediction market operator, will start collecting work information from users attempting to place bets that could benefit from insider information. The platform lets users bet against each other on elections, sporting events, and culture.
Insider Trading Concerns
Prediction markets face growing concerns around insider trading as they continue to surge in popularity. Kalshi said it had discovered candidates for Congress from Minnesota, Texas, and Virginia were betting on their own races earlier this year.
New Measures
Kalshi has developed a new risk scoring method to identify betting markets that appear more at risk of manipulation or insider trading. By requiring more information from users about where they work, Kalshi said it will be able to 'identify presumptive insiders… and screen them out before a trade is ever placed.'
This article was independently rewritten by ManyPress editorial AI from reporting originally published by BBC Business.
