SEBI Chairman warns quantum computing may break current cryptography, urging adoption of quantum-safe, post-quantum encryption
Mumbai
Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey has warned that the growth of quantum computing could soon threaten current digital security systems by breaking cryptography-based passwords that protect sensitive data.
Speaking at the Global Fintech Fest 2025, Pandey said research is underway to develop quantum-safe computing, but once quantum technology becomes widespread, traditional cryptography will become vulnerable. “Even cryptography-generated passwords could be broken, meaning we must rethink how we create and protect them,” he said.
He compared the coming challenge to the Y2K crisis, when computer systems worldwide had to be updated as the year 2000 approached. Pandey explained that the solution lies in adopting post-quantum cryptography, a new form of encryption designed to withstand quantum computing attacks.
“Wherever cryptography secures systems, preparations must begin now to create quantum-proof passwords,” he added.
Pandey also said several fintech companies are already exploring blockchain technology, with SEBI setting up a regulatory sandbox to test blockchain-based financial solutions.
Highlighting digital risks, the SEBI chief noted that while digital infrastructure has made capital markets more accessible, it has also given fraudsters new tools to cheat investors. He cautioned people against falling for fake trading apps, online scams, and dubious influencers promising guaranteed returns.
“Capital markets drive India’s growth, and it is our collective duty to ensure they operate with integrity and transparency,” Pandey emphasized, urging stronger cybersecurity measures for the nation’s financial systems.
