2
TLby u/tuan_le·1dQuestion

Kalshi's KYC/AML and event contract liquidity

Been thinking a bit about Kalshi as it grows. The idea of regulated event contracts is definitely compelling, especially for institutional players who can't touch offshore stuff. But with any platform dealing in financial instruments, even predictive ones, KYC/AML is always front and center.

My main question, and something I'm curious if anyone here has insight into, is how Kalshi's compliance framework impacts liquidity. Are they finding that their rigorous KYC/AML processes, while absolutely necessary, are a barrier to entry for a certain segment of potential users, thereby affecting the depth of markets on some of the less mainstream contracts? It's a fine line to walk between robust compliance and maintaining a fluid market, particularly in a relatively nascent space like regulated prediction markets. I wonder if there are particular jurisdictions they've found easier or harder to onboard from, or if the nature of event contracts themselves presents any unique AML red flags they've had to adapt to.

0 comments · 2 points

0 Comments

No comments yet. Be the first.

More like this