A trader on the Polymarket platform made millions of dollars after predicting certain actions in the Iran war with the USA. The platform has launched a new regulation to prevent insider trading.

Polymarket, a prediction platform from New York, announced updates to its rules on Monday to combat insider trading, prohibiting trades based on stolen confidential information or illegal tips. The company clarified that individuals with authority in certain events cannot bet on their outcomes, such as CEOs of public companies. These rules apply both to the U.S. market and to Polymarket's offshore operations.

Critics, including Ben Schiffrin from Better Markets, have questioned the effectiveness of these policies, emphasizing that the regulation of insider trading cannot be left solely to the platforms. Recently, Polymarket has been under increased scrutiny after its users placed suspicious bets related to international events. Additionally, Kalshi, a competitor, announced similar measures to detect insider trading and prevent market manipulation. Both platforms face criticism for sports betting, and recently proposed laws have aimed to ban transactions that resemble gambling.