Mumbai, Oct. 8 – SEBI chief Tuhin Kanta Pandey warned that quantum computers could soon crack the cryptographic passwords that keep our digital world safe. He spoke at the Global Fintech Fest 2025, cautioning investors and regulators alike.
Pandey said research into so‑called “quantum‑safe” computing is already underway, but the technology will arrive soon. “If quantum computers become practical, they could break current cryptographic systems,” he explained. “That means the passwords we use today—protecting everything from bank accounts to personal data—might become vulnerable.”
He compared the potential shift to the Y2K scare, when computers had to be updated for the year 2000. “Just as we fixed software for Y2K, we will need to replace or upgrade cryptographic methods now,” Pandey added.
The regulator stressed the need for “post‑quantum cryptography.” This new, quantum‑resistant approach will keep passwords—and all other encrypted data—secure against future attacks. “Everyone who uses cryptography for security should start preparing for quantum‑proof solutions,” he urged.
Pandey also highlighted fintech’s growing use of blockchain, which offers a different layer of security. “We have launched a regulatory sandbox that lets fintech companies test blockchain applications safely,” he said. This sandbox aims to foster innovation while keeping the market transparent.
Earlier, Pandey warned that digital infrastructure, while expanding market access, has also given fraudsters new tools. “Fraudsters can now send fake investment offers via messaging apps, misleading influencers, and fake trading sites,” he told audiences at the World Investor Week 2025. “We must protect investors with strong, transparent, and trustworthy systems.”
Key takeaways:
* Quantum computers could break today’s cryptographic passwords, making them unsafe.
* SEBI is pushing for post‑quantum cryptography to keep data secure.
* Fintech firms are testing blockchain in a regulatory sandbox to strengthen security.
* Digital fraud remains a threat; transparency and integrity are essential.
Investors, regulators, and tech developers need to act now. The shift to quantum‑safe security will change how we protect everything from bank logins to national financial data. In Mumbai’s bustling fintech scene, SEBI’s call for stronger encryption could shape the next era of digital safety.
Source: ianslive
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