No, Kalshi doesn't want you to trade inside information to influence markets

• Kalshi is beefing up its response to inside trading, with the platform determined to stamp it out
• Quarterly and annual reporting will be employed, along with outside counsel help to boost transparency
• Kalshi is already deploying strong anti-insider trading systems

Prediction market platforms have come under criticism, allegedly not caring enough about insider trading, the type of offense that gets people in jail, and prominent NBA players being banned for life.

Last week, however, Kalshi became the first sector company to send an unequivocal message to detractors: the platform not only cares if people are trading based on inside information but will actively pursue offenders.

Kalshi rolls up sleeves, tightens oversight of insider trading

The announcement came on Thursday, ahead of the now-concluded Super Bowl, with the company vowing to expand its surveillance and enforcement efforts and ensure that no insider is benefiting from the relevant anonymity of the platforms.

In a press statement, Kalshi once again brought up its license credentials and argued that it operates within the confines of strict oversight:

"Being federally regulated means that Kalshi bans market manipulation, insider trading, has limits on the types of markets it lists, runs Know-Your-Customer (KYC) and Anti-Money Laundering (AML) checks on every user before they can trade, and publicly reports all trades to the CFTC daily."

Kalshi also touted how far it has come in developing such oversight systems, arguing that it has spent years on building safeguards similar to those used in the stock market.

These will now be backed by an independent surveillance advisory committee, which will report to an outside counsel and publish statistics about suspicious activity on the platform.

In a sense, Kalshi is raising the bar for other prediction markets and employing a reporting model similar to the International Betting and Integrity Association (IBIA), which publishes quarterly and annual reports that highlight suspicious betting signals specifically.

Lots of work ahead, Kalshi's boss says

To deliver on this promise, Kalshi is teaming up with Wharton Forensic Analytics Lab as well as Solidus Labs. Kalshi lawyer Robert DeNault will also be the Head of Enforcement, ensuring that there is a quick delivery between intent and execution.

Tarek Mansour, Kalshi’s boss, has already pointed out the company’s track record of addressing suspicious activity, noting that in the past year alone, the company ran more than 200 investigations.

Mansour acknowledged that all systems will suffer from bad actors and that most would be vulnerable, with Kalshi being no exception. However, Mansour argued, Kalshi is determined to ensure that all wrongdoers are caught - "lots of work ahead," he wrapped up.

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