Kalshi, a prediction market platform, will start collecting customer employment information for trading in certain high-risk markets. This move follows several incidents where traders have used inside information to profit on prediction market platforms like Kalshi and Polymarket.

Insider Trading Concerns

Just last week, it was disclosed that former Congressman George Santos was under investigation for allegedly illegally betting he wouldn’t attend President Donald Trump’s State of the Union address after initially saying he would. In April, a U.S. Army soldier was charged with using classified information to make a $400,000 profit trading on Polymarket on the timing of the U.S. military operations in Venezuela earlier this year.

Kalshi will now assign a score to certain markets that it believes are at a heightened risk of insider trading or market manipulation. In order to trade on those markets that are scored to be a high risk, Kalshi will require its customers to provide employment information. Those who Kalshi identifies as presumptive insider traders will be banned from trading in those markets, the company said.

Prediction markets have been pushing hard to gain legitimacy among the public and policymakers as a legitimate platform where users can bet on everything from sports to the weather to elections. Kalshi, in particular, has been trying to differentiate itself from its major competitor Polymarket, whose primary operations are outside of U.S. jurisdiction.

Original reporting: KTBS 3 (Shreveport) — read the source article.