Security and compliance

Regulatory framework

Dark Markets operates under a phased regulatory strategy, beginning with academic research exemptions and progressing through commercial licensing in Switzerland and Singapore, followed by US CFTC engagement and EU expansion. The platform's regulatory approach draws on precedents established by the Iowa Electronic Markets (academic exemption since 1988) and Kalshi (CFTC-registered event contract exchange).

KYC/AML

All prediction market participants must complete identity verification. Tiered KYC applies: basic verification for data subscribers, enhanced verification for market participants including proof of address and, during the pilot phase, accredited investor status. Sanctions screening is performed against OFAC, EU, and UN lists.

Data privacy

The platform collects only information necessary for regulatory compliance. All user data is encrypted and subject to strict access controls. Data retention and deletion policies comply with GDPR requirements for EU-based users.

Operational security

Oracle node infrastructure is distributed across multiple jurisdictions to avoid single-point regulatory or operational failure. All oracle data transmission is encrypted. Smart contract-held funds are secured by multi-signature wallet controls.