StarCompliance has partnered with Kalshi to launch what it describes as the first enterprise-grade global compliance system designed specifically for prediction markets, aiming to strengthen oversight as trading activity in these markets accelerates.
New system targets compliance gaps in prediction markets
The platform is built to monitor employee participation across both on-chain and off-chain environments, extending surveillance into areas that have historically been difficult for firms to track. It integrates with existing digital asset and securities compliance frameworks, allowing firms to oversee trading behavior tied to real-world event contracts.
The system automates surveillance and centralizes case management, analyzing activity by transaction volume, trading patterns, market categories, and even work hours. It also generates configurable alerts based on firm-specific risk thresholds and regulatory requirements, flagging behavior that may breach internal policies or external rules.
Growing scrutiny drives demand for oversight tools
The launch comes as prediction markets expand rapidly. Total notional trading volume surpassed $44 billion in 2025, while monthly global trading activity reached ááááźáááááá $24 billion by April 2026. This surge has drawn increased attention from regulators, who are applying existing fraud and market manipulation laws to these platforms.
Authorities in the United States have already begun pursuing insider trading cases tied to event-based contracts. The Commodity Futures Trading Commission is also working on new rules to define which contracts can be listed, while federal agencies signal readiness to use statutes such as wire fraud laws when confidential information is used in trades.
Linking identity to decentralized activity
A core feature of the new system is its ability to connect individual identities with activity on decentralized networks. By monitoring both blockchain-based and traditional transactions, firms gain visibility into behavior that was previously fragmented or anonymous.
This allows compliance teams to detect patterns such as trades executed during work hours or activity that aligns with non-public information related to a traderâs role, improving their ability to investigate and act on potential violations.
Firms prepare for tighter enforcement environment
The collaboration combines StarComplianceâs long-standing compliance technology with Kalshiâs regulated event-contract infrastructure. Founded in 2018, Kalshi operates a platform where users trade on the outcomes of real-world events, while StarCompliance has provided risk and compliance software across 120 countries for more than 25 years.
Financial firms adopting the system are expected to enforce policies around the use of confidential or proprietary information with greater precision and technological backing. As monitoring capabilities expand, traders operating across prediction markets should expect increased scrutiny and a higher likelihood that questionable activity will be detected.
Webinar to showcase platform capabilities
StarCompliance and Kalshi will host a live product demonstration on July 16 at 10 a.m. Eastern Time, where participants will be shown how the system operates and integrates with existing compliance infrastructures.
Explore how centralized exchanges manage prediction contractsâread what are Toobit event contracts for a practical comparison.
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