StarCompliance and Kalshi have launched what they describe as the first enterprise-grade global compliance solution to monitor employee activity in prediction markets, as rapid market growth and rising regulatory scrutiny increase the need for oversight.
New system targets prediction market risks
The solution, announced on June 17, integrates monitoring of both on-chain and off-chain activity into StarCompliance’s existing compliance platform, which is used by financial institutions across 120 countries. It allows firms to track employee trading in prediction markets through a single interface that combines surveillance, case management, and risk monitoring.
Companies can set automated alerts aligned with internal policies, with tracking based on transaction size, trading behavior, market type, and even activity during working hours. The goal is to detect potential misuse of material non-public information, a growing concern as participation in these markets expands.
Rapid growth drives compliance demand
Prediction markets have seen a sharp rise in activity over the past year. Monthly global trading volume across major platforms increased from under $5 billion in September 2025 to about $24 billion by April 2026. Over the same period, the number of unique wallets interacting with these platforms tripled to roughly 840,000 by February 2026.
This expansion has raised the financial stakes and increased the likelihood of insider activity, creating gaps that traditional compliance systems may not fully address.
Regulatory pressure intensifies
The rollout comes as regulators move to tighten oversight of event-based contracts. On June 10, 2026, the U.S. Commodity Futures Trading Commission proposed revisions to clarify which event contracts are allowed and to establish a more formal review framework.
The proposal follows a surge in trading, with total volume on CFTC-designated markets exceeding $25 billion in 2025. Authorities have signaled that maintaining market integrity is becoming a priority as the sector scales.
Enforcement actions highlight misuse concerns
Recent cases underscore the risks tied to prediction market trading. On May 27, 2026, U.S. prosecutors and the CFTC filed parallel charges against a Google employee accused of using confidential company information to trade on a decentralized prediction platform.
The case points to increasing enforcement against the misuse of corporate or government non-public data, with potential charges including commodities and wire fraud.
Platforms tighten internal rules
In response, platforms are also implementing stricter controls. Kalshi has introduced a requirement for users to disclose their employers when trading contracts deemed high-risk. The move reflects a broader industry shift toward greater transparency following insider trading incidents.
The partnership with StarCompliance aims to complement these efforts by giving firms tools to monitor employee behavior more effectively as prediction markets evolve under closer scrutiny.
Webinar planned for rollout
StarCompliance and Kalshi plan to present the new monitoring system in a joint webinar scheduled for July 16 at 10 a.m. ET, where they will demonstrate its functionality and outline its compliance capabilities.
The companies said their collaboration combines technical integration with ongoing regulatory support, positioning the platform as a response to both market growth and tightening oversight.
Explore how evolving oversight shapes event-based trading in 2026—read why 2026 will reshape prediction markets now.
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