Polymarket Updates Market Integrity Rules, Explicitly Prohibiting Three Insider Trading Behaviors

BlockBeats News, March 23, According to official sources, Polymarket today announced that it has updated its DeFi platform's market integrity rules for a U.S. exchange regulated by the Commodity Futures Trading Commission (CFTC). These rules have been incorporated into the DeFi platform's "Terms of Use" and Polymarket's U.S. Rulebook, further strengthening Polymarket's requirements regarding insider trading and market manipulation, and reiterating Polymarket's commitment to maintaining market quality and protecting user rights.

The updated rules clearly articulate three core prohibitions against insider trading:

Trading on Stolen Confidential Information—Participants shall not engage in any contract trading if they possess confidential information about the underlying event's outcome or potential outcome and using that information would violate a pre-existing trust or confidentiality obligation to others or entities.

Prohibition of Trading on Unlawful Inside Information—Participants shall not trade using confidential information provided to them by others if that information was provided by a person who owed a prior trust or confidentiality obligation to others, and the participant knows or has reason to know that the provider of the information would themselves be prohibited from trading on that information.

Trading by Those Able to Influence the Outcome—Participants shall not engage in any contract trading if they have authority or influence sufficient to affect the outcome of the underlying event.