The Financial Conduct Authority (FCA) has warned UK financial firms to begin preparing for post-quantum cryptography (PQC). According to an official update published by FCA Director of Specialists Mark Francis, advancing quantum computing capabilities could break today’s widely used cryptography standards, putting consumers at risk of fraud, causing operational disruption for firms, and placing the integrity of financial transactions and markets at risk.
NCSC Recommended Migration Milestones
To mitigate these risks, the FCA highlights three key migration milestones recommended by the National Cyber Security Centre (NCSC):
- By 2028: Firms complete a PQC migration plan.
- By 2031: Firms carry out high-priority migration activities.
- By 2035: Firms have migrated all systems, services and products to PQC.
FCA Expectations and Support for Industry
In line with NCSC guidance, the FCA expects firms to act now by taking three specific steps:
- Have a thorough and accurate understanding of the cryptography in place across systems and information.
- Set clear, achievable, safe and risk-based migration objectives.
- Implement migration plans and monitor, test and validate the changes, adjusting them where necessary.
The regulator noted that failed change projects accounted for around a fifth of all incidents reported to the FCA in 2025. Senior managers are urged to allocate enough time, investment, and resources to manage PQC migration safely and meet the relevant deadlines.
To support the industry, the FCA is trialling a new supervisory self-assessment tool with an initial sample of firms before extending it to other firms in due course. The regulator also announced plans to consult on cyber resilience guidance for firms, including expectations for addressing PQC risks through cryptographic controls.
Understanding Crypto Market Security
For UK retail investors and everyday crypto traders, understanding cybersecurity standards and regulatory oversight is critical to keeping funds safe. Independent platforms like UK Bitcoinblog.com provide clear, hype-free updates on UK regulatory developments, security news, and objective market analysis.
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