Enough Is Enough: Kalshi Slams Polymarket Over Alleged Lack of Compliance and KYC

The reports stated that users completing this verification would gain access to perks such as direct co-location to reduce trading latency.

Nonetheless, Josh Stevens, VP of Engineering at Polymarket, stressed that these reports were false and that the current verifications would be linked to a new product in testing stages.

“No KYC is being added to any part of existing polymarket.com with this launch. Once this product is out of beta no KYC will be required to use it,” he explained.

Kalshi‘s Head of Enforcement, Robert J. DeNault, criticized Stevens’ statements, expressing outrage at the lack of compliance measures from Polymarkets offshore operation. He stressed that Iranians and Russians were using the platform and that the company had been sending merch to a user in Moscow to recruit more Russian users.

“Enough is enough… If Polymarket is serious about stopping this, either bring all operations into compliance (which starts with KYC) or shut down the offshore exchange. What exists now is not a safe or fair platform to offer ,” he declared.

Both Polymarket and Kalshi have been strengthening their compliance operations targeting insider trading operators. Kalshi revamped its anti-insider trading strategy ahead of this years Super Bowl, enhancing its active surveillance system, called Poirot, and enrolling top executives to handle these cases.

Polymarket, on the other hand, has implemented a new updated ruleset that typifies several insider trading activities, helping to identify and curb them.

On May 22, Rep. James Comer, Chairman of the House Committee on Oversight and Government Reform, announced a probe into Kalshi and Polymarket, sending letters requesting data on the identification processes applied and insider trading mitigation plans approved.