Majority of Users Losing Money Draws Concern; Kalshi Plans to Strengthen Safeguards and Tighten Deposit Limits for Younger Users

TechFlow News, Oct. 28 — According to Bloomberg, Tarek Mansour, CEO of prediction market platform Kalshi, said that amid research showing a majority of users are losing money, the company is currently discussing additional user protection measures with regulators and is willing to accept raising the minimum age to participate in prediction markets to 21.

Reportedly, Kalshi will impose a $2,500 monthly deposit cap for users under 21 and set up special accounts for affected users designed to curb high-risk behavior. Tarek Mansour emphasized that Kalshi, as an exchange regulated by the U.S. Commodity Futures Trading Commission (CFTC), does not directly act as the counterparty to user trades, and funds lost by users flow to other traders, but he acknowledged that the platform needs to work with regulators to establish appropriate protective rules to address existing regulatory gaps.

Source: TechFlow