NewKerala.com

Key Points

SEBI Chairman Tuhin Kanta Pandey has issued a stark warning about quantum computing's threat to current security systems. He explained that quantum computers will break existing cryptography used for passwords and security across financial sectors. Speaking at the Global Fintech Fest 2025, Pandey emphasized the urgent need to develop quantum-proof security measures. While acknowledging technology's role in making Indian markets more efficient, he stressed the importance of balancing rapid growth with robust safety protocols.

Key Points: SEBI Chief Pandey Warns Quantum Computing Threatens Cryptography

  • SEBI chief warns quantum computing will break current cryptographic security systems
  • Pandey urges preparation for quantum-proof passwords across financial sector
  • Quantum computers use qubits for massively parallel processing capabilities
  • Technology has redefined Indian securities markets from onboarding to supervision
  • SEBI focuses on balancing market growth speed with safety measures
  • Regulator coordinates with depositories and exchanges to strengthen market resilience
3 min read

SEBI chief Tuhin Kanta Pandey warns of quantum computing threats to digital security

SEBI Chairman Tuhin Kanta Pandey warns quantum computing will break current cryptography, urging preparation for quantum-proof security in financial systems.

"After the introduction of Quantum computing, Cryptography will break - Tuhin Kanta Pandey"

Mumbai, October 8

Tuhin Kanta Pandey, Chairman of the Securities and Exchange Board of India (SEBI), on Wednesday highlighted the potential threats posed by quantum computing to current digital security systems."...Wherever in the financial sector or somewhere else, Cryptography is our standard used key for passwords, we need to prepare for it and work for cryptography-proof passwords, as after the introduction of Quantum computing, Cryptography will break," Pandey said, speaking to the reporters on the sidelines of ongoing Global Fintech Fest 2025 (GFF) in Mumbai.

Cryptography is a technique of securing information and communications using codes to ensure confidentiality, integrity and authentication. Thus, preventing unauthorized access to information.

Quantum computing is an advanced form of computation that uses the principles of quantum mechanics to solve complex problems far beyond the capabilities of classical computers. It employs quantum bits, or qubits, which can exist in multiple states simultaneously due to superposition and can be linked together through entanglement, allowing for massively parallel processing.This approach enables quantum computers to tackle problems in fields like medicine, AI, financial modeling, and cryptography that are intractable for today's supercomputers.

Earlier delivering the keynote address titled "Resilient and Inclusive Capital Markets in a Tech-Driven World" GFF 2025 Pandey said that every aspect of the Indian securities market from account openings and settlements to investor grievance redressal and market supervision has been redefined by technology."Today, the Indian securities market is being shaped by reforms and an ecosystem that is vibrant, resilient and inclusive. Technology is at the core of every step," Pandey said.

Outlining SEBI's three core priorities of investor protection, market development and effective regulation, he said technology has become central to each of them. "Whether it is investor onboarding, payment safeguards or risk management, innovation has made the market faster, simpler and safer," he said.Pandey said SEBI's close coordination with depositories, exchanges and technology partners has strengthened investor confidence and market resilience. "We have built an ecosystem where the regulator, industry and intermediaries work together. That coordination is our biggest strength," Pandey noted.As India's markets continue to grow, Pandey said the focus should remain on balancing speed with safety. "The question is not only how fast we grow, but how safely," he said. "Let us continue to harness technology to build thoughtfully, collaboratively, and with an unwavering focus on trust, a capital market that truly embodies a resilient and inclusive India."

- ANI

Share this article:

Reader Comments

R
Rohit P
As someone working in fintech, I appreciate SEBI's foresight. Quantum computing threats are real and we need to start upgrading our systems now rather than waiting for a crisis. The timing is perfect with India's digital transformation journey.
A
Arjun K
While I agree with the concern, I wish SEBI would provide more concrete timelines and roadmaps. Just warning about threats isn't enough - we need actionable plans and budget allocations for this transition.
S
Sarah B
This is fascinating! India has the talent pool in IITs and research institutions to lead in quantum-resistant cryptography. Hope we see more collaboration between academia and industry on this 🤔
V
Vikram M
Balance between speed and safety is crucial. We've seen how digital India has transformed our lives, but security cannot be compromised. Good to see regulators being proactive rather than reactive.
K
Kavya N
As a small investor, this makes me nervous about my mutual fund investments. Hope SEBI ensures a smooth transition without disrupting the market. Trust is everything in financial markets! 🙏

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50