Regulators are asking prediction markets about identity, not trading.
Blog post from Didit
Excluded from normalized aggregate trends after staff review: 3056 posts were attributed to March 2026; 671 shared March 14, 2026. The preceding six-month median was 13.5 posts.
Review evidence: 3,056 posts in March 2026; 671 shared March 14, 2026; preceding six-month median 13.5. Reviewed August 9, 2026.
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In 2026, prediction markets such as Polymarket and Kalshi faced scrutiny from various regulatory bodies, including a U.S. congressional committee and regulators in Spain and France, primarily over issues of user identity verification. The U.S. House Committee on Oversight and Government Reform highlighted concerns regarding inadequate identity controls, particularly in light of allegations that individuals with access to classified information used these platforms for insider trading. The committee requested detailed records from the platforms to assess their compliance with legal obligations, while Spain and France implemented bans due to the platforms' failure to meet local licensing and identity verification requirements. Legal battles in the U.S. centered on jurisdictional disputes over which regulatory authority has the power to enforce identity verification, rather than on the necessity of such verification itself. Other countries, including Portugal, Brazil, India, and Indonesia, also blocked these platforms, citing existing gambling laws. The broader issue remains the ability of these platforms to know and verify their users, a requirement increasingly demanded by regulators worldwide.
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