Last week, Senators Gillibrand and McCormick introduced a bipartisan bill to promote customer protection and market integrity in prediction markets. Today, we’re announcing that Kalshi is proactively implementing measures outlined in the bill, and more.
The measures we are implementing fall under two categories:
Mitigate the risk of unauthorized access by minors.
Enhance responsible risk-taking for traders who use Kalshi.
We’re also publishing a comprehensive Policy Center portal where customers can learn about these features.
Kalshi prohibits minors from trading. Watching the data and building a critical lens of the news is good. Just no trading.
We run KYC (customer verification, like regulated brokers) and use that to block them. But like with any service, motivated minors try to circumvent KYC by using family members’ identification (parents, older siblings, etc.).
We’re releasing features to help prevent unauthorized access:
Face ID by default
Face ID is now active by default for users who have enabled Face ID on their devices. Parents should activate Face ID to ensure minors do not access their parents’ accounts.
Selfie request
We will request selfies as an extra protection layer from higher-risk individuals. We've always had document verification, but now we're also asking for selfies.
Two-factor authentication
This is an existing feature, but it’s now promoted as a way to prevent unauthorized access by minors and others (outside of general security concerns).
ID Check
We’re launching a feature where users can check if someone is logging in under their ID. This is to ensure no one — bad actors, minors, etc. — uses another person’s account against our policies.
2. Further limit risk-taking for traders
We have risk-limit protections in place, such as self-exclusion and self-limits for trading activity. Today, we’re going further.
Inner Circle: More transparency into trading activity
We’re introducing a social feature called Inner Circle, where users can choose to give friends and family access to view their trading activity. Those granted access will receive real-time alerts to help stay on top of account activity.
Health Check
Traders will get deposit limit recommendations based on their activity. We look for signs of unhealthy trading and proactively educate traders on our controls, plus suggest personalized deposit limits for them. In some cases, we ask for proof of funds.
There is more work to do. We have been doing a lot of research and will continue to uncover new insights that might lead to more safeguard measures.
