Polymarket Updates Market Integrity Rules, Strengthens Insider Trading and Manipulation Oversight

Odaily News Polymarket has announced updates to its market integrity rules for both its DeFi platform and its CFTC-regulated U.S. exchange, further clarifying regulatory requirements concerning insider trading and market manipulation.

The new rules detail three categories of prohibited conduct, including trading based on non-public information, establishing positions based on illegally sourced information, and participation in trading by entities with the ability to influence event outcomes. Simultaneously, the platform explicitly prohibits behaviors such as wash trading, matched orders, and price manipulation, and has launched a dedicated page to explain the rules and provide channels for reporting suspicious activities.

Furthermore, Polymarket stated that its DeFi platform employs on-chain transparency mechanisms and a multi-layered monitoring system for risk identification, while its U.S. platform combines technical surveillance with collaboration from industry regulators to investigate and penalize violations.