Concerns rise over insider trading in prediction markets after high-profile bets on geopolitical events. Preventing insider trading is possible with KYC measures, but enforcement is challenging on non-KYC platforms. Trading volumes in prediction markets hit almost $6 billion by mid-January 2026. KYC requirements vary across platforms like Kalshi and Polymarket.

Kalshi enforces KYC requirements for US users under CFTC authority, while Polymarket applies KYC to US users. Decentralized prediction market Opinion, backed by YZi Labs, does not provide public information on KYC requirements. Major prediction market platforms face scrutiny following high-profile bets on geopolitical events.

US lawmakers, including Representative Ritchie Torres, support legislation to prevent government officials from trading on prediction markets with material nonpublic information. The news article aims to provide accurate and timely information on the challenges and regulations surrounding prediction markets.

Read more at Cointelegraph: Prediction Markets Must Use KYC To Curb Insider Trades: Messari