- Polymarket published new market integrity rules across both venues on March 23.
- New rules cover insider trading, manipulation, enforcement, and suspicious activity reporting.
- DeFi trades remain visible on Polygon, while Polymarket US adds NFA-linked surveillance.
Well-known prediction market Polymarket updated its market integrity rules for both its DeFi platform and U.S. trading platform. The changes focus on insider trading, market manipulation, and suspicious activity reporting.
Meanwhile, the update comes as prediction markets face growing trader activity and increased regulatory attention.
Polymarket Updates Rules Across Both Platforms
Polymarket announced the rule changes on March 23, saying the update applies to both its DeFi platform and its CFTC-regulated U.S. exchange. The company said the revisions aim to clarify prohibited conduct, enforcement procedures, and reporting methods.
The announcement was first shared in an X post, with updated governing documents published alongside it. The changes affect traders, market makers, and platform users across both venues.
Polymarket said the update is designed to improve transparency and strengthen market integrity as prediction markets continue to grow.
Neal Kumar, the chief legal officer of Polymarket, stated that the markets are about reality, and the changes were a more articulate outlook of the expectations in each platform.
New Conduct Rules Target Insider Trading
Revised rules now separate three types of prohibited insider trading conduct. One category covers trading on stolen confidential information. Another covers illegal tips passed by someone who owed a duty of trust. A third bar trading by people in positions of authority who can influence the outcome of an event tied to a contract.
Rule updates also reach beyond insider activity. Fraud, spoofing, wash trading, fictitious transactions, self-dealing, front-running, information misuse, attempted manipulation, and disruptive practices are all listed as prohibited conduct.
Market users are likely to focus on this section closely, as it outlines a more definite boundary around behavior that can corrupt the pricing and ultimately cause a lack of confidence.
DeFi Trades Remain Transparent On-Chain
Additionally, Polymarket’s DeFi platform continues to rely on on-chain transparency. Trades settle on Polygon, allowing activity to remain publicly visible.
The platform also uses monitoring tools and surveillance partners to detect unusual activity. Contract holders and market behavior can be reviewed directly, helping identify suspicious patterns.
Users can report concerns through dedicated communication channels, including Discord and email.
US Platform Adds Surveillance Measures
Polymarket’s U.S. platform uses a separate monitoring structure. This includes an external surveillance partner, a real-time control desk, and a Regulatory Services Agreement with the National Futures Association.
The updated rules also introduce formal reporting channels for suspicious activity. U.S. users can now submit reports through dedicated compliance contacts.
The changes reflect growing oversight as regulated prediction markets expand in the United States.
Related: Polymarket Bans Users After Death Threats to Israeli Reporter
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Source: https://coinedition.com/polymarket-updates-integrity-rules-for-defi-and-us-trading-platforms/
