Kalshi adds software partner as it looks to boost prediction market surveillance
Kalshi and StarCompliance launched a monitoring platform for financial firms to oversee employee trading on prediction markets. The system flags activity using transaction volume, trading patterns, market categories and work-hour behavior, and gives firms a centralized way to manage investigations and audit records across onchain and offchain activity. The product extends StarCompliance’s existing compliance tools to include Kalshi event-contract trading. The launch comes amid growing scrutiny of prediction markets over insider trading and use of non-public information, highlighted by a federal case alleging a military officer used sensitive information to profit on Polymarket. In the US, at least 11 states have taken action against Kalshi or Polymarket, fueling a broader fight over whether event contracts are gambling products or federally regulated derivatives under the CFTC. Lawmakers and regulators are also pressing the industry on suspicious trades tied to military actions and other sensitive events.
