StarCompliance has partnered with Kalshi to launch what the companies describe as the first enterprise-grade global compliance solution for monitoring employee activity in prediction markets, as rapid growth in the sector draws increasing regulatory scrutiny.
The platform is designed to give financial firms a single system to oversee both on-chain and off-chain activity, expanding StarCompliance’s existing tools for digital assets and traditional securities. It allows firms to track employee participation in prediction markets while aligning with internal policies and regulatory requirements.
Rising compliance pressures in prediction markets
The launch comes as prediction markets experience sharp growth and heightened oversight. Global trading volume across these markets surged more than 400% in 2025 to nearly $64 billion, with monthly volumes climbing from under $5 billion in September 2025 to around $24 billion by April 2026.
At the same time, regulators are taking a more active stance. The Commodity Futures Trading Commission recently confirmed it is drafting rules to restrict certain types of wagers considered vulnerable to manipulation using insider information. This follows the first federal case involving alleged insider trading tied to prediction markets.
Participation has also expanded rapidly, with the number of unique digital wallets interacting with these platforms more than tripling in the six months leading up to February 2026. As access broadens, including integrations that connect platforms like Kalshi to tens of millions of brokerage accounts, oversight risks have intensified.
New tool targets emerging risks
StarCompliance said the new system addresses compliance gaps created by these developments, as traditional monitoring tools were not designed to detect trading tied to real-world event outcomes.
The prediction markets monitoring solution includes automated surveillance, customizable alerts, centralized case management, and visibility into trading patterns such as volume, category exposure, and activity during work hours. It is also designed to identify behavior that may indicate misuse of sensitive or non-public information.
According to the company’s chief product officer Dickenson, the system adapts to different regulatory environments and enables oversight across multiple digital channels, reflecting the fragmented global landscape surrounding prediction markets.
Bridging on-chain and off-chain activity
A key feature of the platform is its ability to link employee identities with both traditional financial accounts and pseudonymous blockchain activity, creating a unified compliance profile. This approach reflects a shift toward institutional-grade monitoring in markets that were previously less visible.
As a result, employee trading activity tied to real-world events is increasingly subject to detailed analysis, particularly where there may be overlaps between a contract’s subject matter and an individual’s access to confidential information.
Industry collaboration and rollout
The partnership combines StarCompliance’s compliance infrastructure with Kalshi’s prediction market expertise. Kalshi, founded in 2018, operates a regulated exchange for contracts based on real-world outcomes, while StarCompliance provides compliance technology to firms in more than 120 countries.
Both companies plan to present the platform’s features and implementation process during a webinar scheduled for July 16.
The initiative signals a broader shift as prediction markets move into the financial mainstream, bringing stricter supervision and more advanced monitoring tools for firms navigating this evolving space.
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