Kalshi Adds Employer Disclosure Rule in Bid to Prevent Market Manipulation

Kalshi introduced new compliance rules on Tuesday targeting prediction markets it believes are more vulnerable to insider trading and manipulation.

The platform said it will require some users to disclose their employers as part of a broader effort to strengthen oversight and reduce abusive trading behavior.

As a federally regulated exchange, Kalshi explained that the new requirements will apply only to contracts flagged as higher risk, where participants may be subject to additional screening before trading.

The company said the changes take effect immediately and follow guidance from an independent Surveillance Audit Committee that reviewed its monitoring systems, enforcement procedures, and risk controls.

“For markets with elevated insider or manipulation risk, we now collect employment information before participation,” Kalshi said, adding that the aim is to detect traders who may have access to material non-public information.

The update comes amid growing scrutiny of prediction markets from regulators and academics. Recent research into Polymarket activity between 2023 and 2025 found that a small share of traders accounted for most price movements, while several high-profile cases have involved alleged insider betting tied to sensitive real-world events.

Kalshi said it blocked more than 100 suspected insider trades in the first quarter, conducted over 150 investigations, referred more than 20 cases to law enforcement, and issued multiple disciplinary actions, though it did not release detailed information and the figures could not be independently verified.

Alongside the employer disclosure requirement, the company is launching a new risk-scoring system that evaluates markets based on factors such as manipulation risk, regulatory sensitivity, and national-security implications, with the ability to tighten rules or reject listings.

It also added whistleblower tools that allow users to report suspicious activity directly within specific markets.

Observers say the changes highlight how prediction markets are evolving toward stricter surveillance frameworks, as platforms scale and face increasing pressure to match institutional-grade compliance standards.