Kalshi and the AML/KYC Challenge for Prediction Markets

Been following Kalshi's progress with interest, and it's certainly a novel space they're carving out. My mind keeps circling back to the compliance side, specifically AML and KYC. Traditional financial institutions have decades of regulatory evolution and established frameworks to deal with these, but prediction markets, especially those dealing with potentially nuanced or abstract event outcomes, feel like a fresh challenge.

What are the forum's thoughts on how Kalshi, or indeed any regulated prediction market, navigates the inherent risks of money laundering or even basic identity verification when the 'product' is so distinct from a stock or a bond? I'm particularly curious about how they manage the granularity of due diligence for participants betting on outcomes that might seem innocuous on the surface, but could potentially be leveraged for illicit activities if not properly scrutinized. The 'know your customer' part feels particularly complex when the 'transactions' are more about predictions than direct asset transfers. It's not just about source of funds, but intent and the nature of the prediction itself. Any insights from those closer to the regulatory aspects of fintech innovation would be greatly appreciated.