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Josh Stevens, VP of Engineering astatine Polymarket, denied reports indicating that the prediction market level would displacement to a exemplary requiring afloat lawsuit ID for its operations. Kalshi’s Head of Enforcement, Robert J. DeNault, called Polymarket to heighten its compliance policies, arsenic insiders were “using the level near and right.”
Published: May 28, 2026, 3:35 PM
Key Takeaways
- Josh Stevens denied adding KYC to existing Polymarket services but faces Kalshi unit to comply next.
- On May 22, James Comer launched a probe into Kalshi and Polymarket implicit compliance and insider trading data.
- As compliance rules interaction the industry, Kalshi and Polymarket some revamped their surveillance strategy up of this year’s Super Bowl.
Kalshi Criticizes Polymarket’s Compliance Policies: ‘Enough is Enough’
Prediction markets, which are present nether accrued regulatory oversight successful the U.S., are refining their compliance policies. Nonetheless, Kalshi and Polymarket, the apical 2 companies successful the market, look this process differently.
Recent reports indicated that Polymarket, which operates nether a dual structure, would beryllium gearing up to present individuality checks connected its level to debar the usage of virtual backstage networks (VPNs) to sidestep its geofencing restrictions.
The reports stated that users completing this verification would summation entree to perks specified arsenic nonstop co-location to trim trading latency.
Nonetheless, Josh Stevens, VP of Engineering astatine Polymarket, stressed that these reports were mendacious and that the existent verifications would beryllium linked to a caller merchandise successful investigating stages.
“No KYC is being added to immoderate portion of existing polymarket.com with this launch. Once this merchandise is retired of beta nary KYC volition beryllium required to usage it,” helium explained.
Kalshi’s Head of Enforcement, Robert J. DeNault, criticized Stevens’ statements, expressing outrage astatine the deficiency of compliance measures from Polymarket’s offshore operation. He stressed that Iranians and Russians were utilizing the level and that the institution had been sending merch to a idiosyncratic successful Moscow to enlistee much Russian users.
“Enough is enough… If Polymarket is superior astir stopping this, either bring each operations into compliance (which starts with KYC) oregon unopen down the offshore exchange. What exists present is not a harmless oregon just level to connection prediction markets,” helium declared.
Both Polymarket and Kalshi person been strengthening their compliance operations targeting insider trading operators. Kalshi revamped its anti-insider trading strategy up of this year’s Super Bowl, enhancing its progressive surveillance system, called Poirot, and enrolling apical executives to grip these cases.
Polymarket, connected the different hand, has implemented a caller updated ruleset that typifies respective insider trading activities, helping to place and curb them.
On May 22, Rep. James Comer, Chairman of the House Committee connected Oversight and Government Reform, announced a probe into Kalshi and Polymarket, sending letters requesting information connected the recognition processes applied and insider trading mitigation plans approved.
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