Messari analyst: KYC is essential for preventing insider trading in prediction markets

Know Your Customer (KYC) procedures are essential for preventing insider trading in prediction markets, Messari Research Analyst Austin Weiler said in an interview with Cointelegraph. He explained that platforms with KYC can proactively block certain users, such as government officials, from accessing political or geopolitical markets. While acknowledging that KYC cannot stop insiders from sharing information with third parties, Weiler described it as a crucial barrier against the abuse of authority. He noted that on-chain prediction markets without KYC have no way to determine if a user is an insider. Weiler added that Polymarket currently applies KYC selectively to its U.S. users, whereas Kalshi enforces a strict KYC policy.