Prediction market platform Kalshi is bolstering its compliance framework as it seeks to expand its institutional presence. The company has partnered with compliance technology provider Comply to offer enhanced monitoring tools for its enterprise clients, aiming to detect potential insider trading and ensure adherence to internal trading policies.
The integration will allow firms using Comply’s regulatory software to track employee trading activity on Kalshi’s prediction markets. This system is designed to help companies identify the misuse of material non-public information and verify that employees are complying with internal trading policies. These monitoring capabilities will also extend to Kalshi’s planned perpetual futures products.
This move reflects a growing demand from institutional investors for compliance standards comparable to those in traditional financial markets. Many firms already utilize surveillance systems for stocks, bonds, and digital assets and expect similar oversight before increasing their exposure to prediction markets. Kalshi executives noted that while the platform operates its own surveillance program, many firms desire direct access to compliance data for their own monitoring processes.
The announcement comes amid an active period for Kalshi, which recently sought regulatory approval to broaden its derivatives offerings beyond crypto-related products. However, prediction markets continue to face legal uncertainty in the United States. The Commodity Futures Trading Commission and operators like Kalshi and Polymarket recently experienced a setback when a federal court rejected motions in legal disputes concerning sports event contracts. Furthermore, the New York Attorney General has initiated legal action against Kalshi.
Despite these regulatory hurdles, Kalshi’s compliance initiative is viewed as a strategic move to make prediction markets more attractive to institutional participants who prioritize governance and regulatory safeguards.