Polymarket is moving to quash insider trading as prediction markets face scrutiny over whether some users draw on classified or other closely held information to gain an edge in betting on events.
The New York-based company said Monday that it has updated its rules to prohibit trades based on “stolen confidential information” or illegal tips. Polymarket also clarified that traders cannot place a bet if they “hold a position of authority or influence” that may influence the outcome of a certain event.
For example, CEOs of a public company would not be allowed to trade on a market focused on how many times they will use a certain word during an earnings call with Wall Street analysts. Polymarket’s rules, which are now posted on a “market integrity” page on its website, apply to the company’s U.S. exchange and offshore operations.
“Concern around trading”
Companies like Polymarket and rival Kalshi let users wager money on the
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