Kalshi has developed a new approach to scoring risks on event contracts that might be subject to any manipulation or insider trading. The approach will be applied before a market is listed. The review looks at several areas, including:
- Connections to corporate events;
- Outcome concentration;
- Regulatory risk;
- Possible access to material, non-public information;
- Market importance;
- National security concerns.
Risk Scores Come Before Listings
National security will also form a part of the analysis. According to Kalshi, the criterion may apply where military action, physical violence, leadership changes, or foreign policy events could affect the outcome. However, even though Kalshi does not offer markets on war, assassination, or violence, some standard political or leadership markets could still raise national security concerns.
The model gives Kalshi a way to reject or restrict some high-risk markets before they are listed.
Employer Checks Enter High-Risk Markets
Employment verification is the most prominent change affecting users. In markets with certain risk scores, users may need to provide employment information before they can trade.
According to Kalshi, the objective is to uncover any individuals with potential access to material, non-public information. If a user poses such a conflict of interest, then they may be barred from participating in the market.
This is a stricter approach than simple account checks. It also reflects a problem specific to prediction markets. A person may not be a classic corporate insider, but they may still know something that can move an event contract. This could include people close to campaigns, companies, government bodies, media operations, or other decision-making processes.
Enforcement Data Shows the Pressure
Kalshi also released its own enforcement statistics from Q1 2026. As such, Kalshi stated that it initiated more than 150 investigations, blocked more than 100 potential insider trades, referred more than 20 issues to authorities, and issued five disciplinary actions.
These numbers explain why there is an announcement at this point. Prediction markets have been growing rapidly across politics, sports, economics, and global events. With that growth, the line between public forecasting and unfair information use has become harder to police.
This was already demonstrated through several cases that were previously raised involving candidates and other individuals using the platform. The measures also give Kalshi a clearer way to show regulators that it can monitor sensitive markets internally.
User Reports Become Part of Surveillance
Whistleblower features would also be included in each market on Kalshi. Users can now report suspicious or abusive trading activity directly to Kalshi’s surveillance team.
This could prove helpful as there are public order books in Kalshi markets. People can check trading activities as and when they happen. The new tool turns that visibility into a direct reporting channel.
An independent Surveillance Audit Committee will also continue monitoring the integrity program of the exchange. Quarterly reviews are expected in this regard.
Expert View
Kalshi’s update is less about one compliance feature and more about timing. The company is trying to move enforcement closer to the point where risk starts: before a market is listed and before a trader enters an order.
For prediction markets, this may become a core test. Growth alone will not be enough if exchanges cannot prove that event contracts are fair, monitored, and harder to exploit with private information.
