Kalshi, a prediction market platform that enables users to place bets on a wide range of topics including sports, politics, and even celebrity events, announced on Tuesday that it will require traders to disclose their employers when participating in certain high-risk markets. This policy change aims to reduce the risk of insider trading and address growing concerns about the misuse of nonpublic information.

Under the new measures, users wishing to trade in markets linked to sensitive private data—such as quarterly Tesla delivery figures or work of art sale prices—will be asked to submit employment information via an online form. While Kalshi will not routinely verify this data, it may investigate and seek proof of employment if suspicious activity is flagged by an employer or detected through other means. In some cases, users could be barred from specific trades based on their workplace affiliations.

The company said the update follows recommendations from an advisory committee formed earlier this year, which advised implementing stronger security protocols and facilitating whistleblower reporting mechanisms. Kalshi also noted that it had previously required employment disclosures for markets deemed to carry national security risks, emphasizing that it does not offer markets on war, assassination, or violence. However, it acknowledged that certain markets concerning leadership or foreign policy might raise incidental national security issues.

This shift comes amid heightened regulatory and legislative scrutiny of prediction markets. Authorities are increasingly concerned about the potential for insider trading, particularly as accurate bets have been placed based on nonpublic information related to government actions in Iran and Venezuela, as well as corporate developments, such as Google search trends. The U.S. House and Senate have introduced bills to prohibit public officials from betting on prediction markets using confidential information obtained through their positions. Additionally, state-level legislation in New York and Illinois bars government employees from exploiting inside information for gambling purposes.

Kalshi’s new policy is part of a broader effort to address these challenges while maintaining the platform’s diverse range of trading options. The company stressed its commitment to balancing openness with responsible oversight to protect market integrity as the prediction market sector continues to expand.