Polymarket Updates Market Integrity Rules, Explicitly Prohibits Three Types of Insider Trading

BlockBeats News, March 23, according to official sources, Polymarket announced today that it has updated the market integrity rules for its DeFi platform and its 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 the Polymarket U.S. Rulebook, further strengthening Polymarket's requirements against insider trading and market manipulation, and reaffirming Polymarket's commitment to maintaining market quality and protecting user rights. The updated rules explicitly prohibit three core types of insider trading: Trading using stolen confidential information — If a participant possesses confidential information about the outcome or potential outcome of the underlying event and using this information would violate pre-existing trust or confidentiality obligations owed to other individuals or entities, the participant is prohibited from trading any contracts. Trading using illegally obtained insider information — Participants are prohibited from trading using confidential information provided to them by others if the information was provided by someone who owed a pre-existing trust or confidentiality obligation to others, and the participant knows or has reason to know that the provider of the information is themselves prohibited from using the information for trading. Trading by individuals who can influence the outcome — If a participant has authority or influence sufficient to affect the outcome of the underlying event, they are prohibited from trading any contracts.