Messari Analyst: Without KYC, Prediction Markets Will Struggle to Combat Insider Trading 🚫👤
Prediction Markets are in the spotlight, but the issue of insider trading has also come to the fore. Messari analyst Austin Weiler clearly stated: Without mandatory KYC (Know Your Customer) verification, regulating this space is nearly impossible.
What are the core pain points?
Wallet Anonymity: The transparency of blockchain can only showcase transactions, but cannot reveal identities. We cannot prove whether a profitable wallet belongs to an official with insider information or is simply a lucky trader. Attribution Difficulty: If a wallet is not linked to a real identity, law enforcement cannot effectively pursue legal accountability. Limited Technical Means: Measures like monitoring abnormal activities or slowing down transaction speeds can easily be circumvented, resulting in minimal effectiveness.
Current Attitudes of Various Platforms:
🔹 Kalshi: Regulated by the CFTC, implementing strict KYC.
🔹 Polymarket: Only conducts KYC for US users, while the international market remains largely decentralized.
🔹 Decentralized Platforms: Rarely conduct identity verification, making regulation of insider trading extremely difficult.
Weiler believes that only by establishing thresholds through KYC and restricting access for special groups like public officials can market standards be improved. However, for the crypto community, this undoubtedly poses a challenge to the core principle of decentralization.
What do you think? Do you believe prediction markets should introduce mandatory KYC, or is maintaining anonymity more important? 👇
#预测市场 #KYC #Messari #加密货币 #内幕交易