Prediction market platform Kalshi has partnered with StarCompliance to give financial institutions real-time visibility into employee trading activity as it expands efforts to address insider trading concerns and attract institutional participants.
Summary
- Kalshi has partnered with StarCompliance to give financial firms real time monitoring of employee prediction market trades.
- Employees at participating firms will be required to link their Kalshi accounts, allowing compliance teams to flag suspicious activity.
- The agreement follows Kalshi’s recent compliance push, which included employer disclosures, market risk reviews, and more than 100 blocked insider trading attempts in Q1 2026.
According to a Barron’s report, employees at firms using StarCompliance will be able to link their Kalshi accounts to compliance systems that monitor trades and flag potentially suspicious activity.
The arrangement allows employers to oversee prediction market participation in much the same way they already supervise employee trading in stocks and derivatives.
The partnership comes days after Kalshi introduced new compliance controls across its platform, including employer disclosure requirements for traders participating in markets considered more vulnerable to insider trading.
Earlier this month, the company said it had conducted more than 150 investigations, blocked over 100 suspected insider-trading attempts, and referred 20 cases to law enforcement during the first quarter of 2026.
According to the companies, financial institutions face new risks as prediction markets become more popular because employees may attempt to profit from material nonpublic information through event-based contracts.
StarCompliance said its software will help firms monitor activity on Kalshi and enforce internal compliance policies.
Explaining how the system works, Kelvin Dickenson, chief product officer at StarCompliance, said firms can permit employee participation while requiring account disclosure.
Dickenson said the framework allows employers to tell staff, “You can engage in this activity, but in order to engage in this activity you have to disclose your accounts to me.”
For now, the arrangement focuses on monitoring transactions after accounts are connected. Dickenson told Barron’s that additional controls could be introduced later if clients request them, including requirements for employees to obtain approval before placing prediction market trades.
Compliance measures expand as institutional interest grows
Recent moves suggest Kalshi is putting compliance infrastructure at the center of its push into traditional finance.
Speaking to Barron’s, Max Crowley, vice president of business development at Kalshi, said the company is “obsessed with compliance” and described strong monitoring systems as a basic requirement for working with major financial institutions.
Crowley said the StarCompliance integration emerged after discussions with a large New York hedge fund that wanted to hedge risk through a Kalshi institutional account but could not participate because the platform lacked a StarCompliance connection.
Recalling the conversation, Crowley said the fund’s response was, “You don’t have an integration with StarCompliance.”
The latest announcement follows several steps Kalshi has taken to strengthen oversight. Alongside employer disclosures for higher-risk markets, the company recently launched a whistleblower reporting channel and introduced a risk-scoring process for every proposed market before listing.
Pressure on prediction markets has intensified following a series of alleged insider-trading cases across the sector.
Earlier this month, NPR reported that the U.S. Department of Justice and the Commodity Futures Trading Commission were investigating former U.S. Representative George Santos after Kalshi detected suspicious trading tied to a market involving President Donald Trump’s State of the Union address.
The company froze the account and referred the matter to authorities, according to NPR.
Federal prosecutors have also pursued separate cases involving trading activity on prediction market platform Polymarket.
One case involved a U.S. Army Special Forces soldier accused of using classified information to place trades related to former Venezuelan President Nicolás Maduro, while another involved a Google software engineer accused of using confidential company information to trade Google-related contracts.