Abstract Quantum computing is rapidly advancing from a theoretical possibility to a transformative force in financial systems. With its high-dimensional computational capacity, quantum technology is promising for enhancing risk modelling, fraud detection and transaction efficiency. However, it also seriously threatens cryptographic security, regulatory coherence and systemic stability. This paper critically analyses the risks introduced by cryptographically relevant quantum computers and assesses the readiness of legal and institutional frameworks to respond. Focusing on the UK financial regulatory environment, the study proposes a quantum-safe integration roadmap grounded in post-quantum cryptography, adaptive regulatory models and sector-wide governance strategies. The paper argues for anticipatory regulation that embeds enforceable standards and strategic collaboration across public and private stakeholders through an interdisciplinary approach combining legal analysis and financial risk modelling. The UK’s leadership in quantum policy positions it to shape international norms in secure quantum adoption. Finally, the paper offers an analytical framework to ensure that quantum innovation reinforces rather than destabilises data integrity, financial resilience and public trust.
Abstract Quantum computing is rapidly advancing from a theoretical possibility to a transformative force in financial systems. With its high-dimensional computational capacity, quantum technology is promising for enhancing risk modelling, fraud detection and transaction efficiency. However, it also seriously threatens cryptographic security, regulatory coherence and systemic stability. This paper critically analyses the risks introduced by cryptographically relevant quantum computers and assesses the readiness of legal and institutional frameworks to respond. Focusing on the UK financial regulatory environment, the study proposes a quantum-safe integration roadmap grounded in post-quantum cryptography, adaptive regulatory models and sector-wide governance strategies. The paper argues for anticipatory regulation that embeds enforceable standards and strategic collaboration across public and private stakeholders through an interdisciplinary approach combining legal analysis and financial risk modelling. The UK’s leadership in quantum policy positions it to shape international norms in secure quantum adoption. Finally, the paper offers an analytical framework to ensure that quantum innovation reinforces rather than destabilises data integrity, financial resilience and public trust.
Quantum computing is advancing rapidly and is expected to reshape the cybersecurity foundations of the financial sector. Modern financial systems rely heavily on classical public-key cryptography such as Rivest-Shamir-Adleman (RSA) and elliptic-curve cryptography (ECC), which are vulnerable to quantum algorithms capable of breaking current encryption schemes. As these technologies mature, financial institutions face growing pressure to transition toward quantum-resistant security frameworks that can preserve the confidentiality and integrity of financial data. This paper reviews the role of quantum cryptography in finance and describes how governments, regulators, and financial institutions are preparing for the transition to quantum-resilient security systems. Drawing on academic literature, institutional reports, and organizational case studies, the analysis explores the technical, regulatory, and economic factors shaping the adoption of post-quantum security measures across global financial networks. Particular attention is given to hybrid security strategies that combine post-quantum cryptography (PQC) with quantum key distribution (QKD), which are emerging as practical solutions for strengthening communication security while maintaining operational performance. The findings highlight substantial disparities in national and institutional readiness, with higher-income countries and large financial organizations leading pilot programs and infrastructure investments while lower-capacity systems remain dependent on legacy encryption. These differences create uneven levels of protection across interconnected financial networks and increase the risk of systemic vulnerability. The paper concludes that coordinated standards, phased implementation strategies, and sustained investment in technical capacity will be essential for maintaining secure and stable financial systems in the quantum era.
Quantum computing is set to transform various industries. Among them, the financial sector is especially vulnerable due to its reliance on encryption for securing transactions, customer data and proprietary financial models. Quantum computing threatens financial institutions by breaking current cryptographic methods, making them more vulnerable than other industries. This paper examines the potential impact of quantum computing on financial data security and focuses on the challenges and opportunities it presents. Quantum computers can solve complex mathematical problems more efficiently than classical computers. They pose a significant threat to current cryptographic systems that safeguard financial data. To mitigate this risk, financial institutions must adopt quantum-resistant encryption to maintain data integrity and privacy. On the other hand, quantum computing offers opportunities for enhancing financial security through advanced algorithms and improved risk assessment models. The paper also explores ethical and regulatory considerations, emphasizing the need for proactive measures to align technological advancements with societal values and legal frameworks. Addressing these challenges while leveraging opportunities will enable the financial industry to navigate the quantum era securely.
This article examines the legal regulation of quantum communications in the financial sector, which is viewed as a priority area for ensuring information security and the resilience of the national economy. It is noted that the rapid development of quantum computing is fundamentally altering the balance in the field of cybersecurity: in the foreseeable future, traditional cryptographic mechanisms may lose their robustness, creating risks for the functioning of the national payment system, the stability of credit and financial institutions, and public trust in financial transactions. In these circumstances, quantum key distribution (QKD) and post-quantum algorithms become key instruments capable of ensuring a fundamentally new level of information protection and of shaping a sustainable architecture of digital security. The methodological basis of the study consists of comparative legal analysis and a comparison of foreign regulatory practices (the European Union, Singapore, China and Brazil) with Russian strategic instruments and pilot initiatives. International experience shows that the implementation of quantum communications is pursued through inclusion in strategic programmes, development of standards, creation of “regulatory sandboxes,” and support for pilot projects. Particular attention is given to the need to harmonise national approaches and to develop international agreements capable of eliminating regulatory fragmentation. A domestic model of legal regulation is taking shape in Russia: concepts and roadmaps through 2030 have been approved; preliminary national standards (PNST 829–832) have been adopted; the GOST R 57580.x series is being developed; quantum cryptography tools are being certified; and pilot projects are being implemented with the participation of major financial organisations. At the same time, the study identifies barriers hindering further development—fragmentation of the regulatory framework, complex procurement procedures, and insufficient institutional coordination among the state, business and the academic community. Priority areas are proposed, including institutionalisation of experimental legal regimes, establishment of permanent expert platforms, expansion of pilot-project practice, harmonisation of national rules with international initiatives, and development of a national quantum communications infrastructure. The article concludes that consolidation of legal, organisational and technical measures will strengthen technological sovereignty and ensure long-term protection of the financial system against quantum threats.
The advent of Quantum Technology (QT) and its application in Quantum Computing (QC) marks the next major technological frontier following Artificial Intelligence, by prompting significant investment from governments and global corporations, particularly from the financial sector. The immense data processing capabilities of QC are poised to revolutionize finance, offering new avenues for optimizing complex financial transactions and enhancing fraud detection systems. However, such technological leap simultaneously introduces a critical and urgent risk to global cybersecurity and, by extension, the stability of the financial markets. Specifically, such computational power inherent in advanced quantum systems fundamentally compromises the cryptographic algorithms which are currently used in electronic financial transactions, which may cause instability and thereby pose substantial risk across the financial ecosystem. Major countries are taking proactive actions to address such risk by initiating policy transitions toward quantum security and considering adopting Post-Quantum Cryptography (PQC). These jurisdictions are actively preparing a shift in their digital infrastructure to mitigate the inevitable risk of a “Store Now, Decrypt Later” attack. In stark contrast, domestic discussions and policy preparations for this critical security transition remain relatively inactive in South Korea. Such regulatory and policy gap highlights an urgent need to adopt preemptive action to safeguard the nation’s financial integrity. Given the circumstances, this paper, therefore, examines the current legal and regulatory framework in South Korea related to cryptographic systems in electronic finance, identifies specific legislative deficiencies, and proposes concrete measures to overcome such risks. To effectively manage the rapid technological shifts characteristic of the Fourth Industrial Revolution, this paper will focus how South Korea should align with international trends by prioritizing a regulatory approach centered on soft law and non-binding guidelines, rather than imposing rigid, strict legal regulations. Furthermore, the paper will emphasize the importance of adopting a purposive (teleological) interpretation of existing and future laws to ensure regulatory frameworks remain agile and relevant in the face of continuous technological evolution. Based on such legislative and interpretive foundations, the paper aims to stress the necessity for South Korea to actively engage with major international stakeholders and foreign countries as such international cooperation is crucial not only for collectively strengthening global financial cybersecurity but also for reducing the risk of regulatory fragmentation in a complex and interconnected quantum security landscape.
The rapid evolution of financial technologies (FinTech) and digital assets—including cryptocurrencies, decentralized finance (DeFi), and tokenized capital markets—has created an unprecedented need for secure, scalable, and computationally efficient systems. This study examines the transformative potential of quantum computing in reshaping financial technology infrastructures and digital asset ecosystems. Traditional computational models, constrained by classical encryption limits and the exponential growth of financial data, face increasing inefficiencies in handling real-time risk assessment, portfolio optimization, and transaction verification. Quantum computing, with its capacity for superposition, entanglement, and parallel state evaluation, provides novel opportunities to redefine data security, financial modeling, and cryptographic mechanisms in the digital economy. The research explores how quantum algorithms—notably Quantum Approximate Optimization Algorithm (QAOA), Quantum Fourier Transform (QFT), and Grover’s search algorithm—can enhance financial operations such as market forecasting, fraud detection, and asset pricing. Additionally, it investigates quantum-resistant cryptography to safeguard digital asset networks against the vulnerabilities introduced by future quantum decryption capabilities. By integrating hybrid quantum–classical frameworks, this approach enables the development of sustainable, adaptive, and transparent financial systems. The findings highlight quantum computing’s potential to advance financial inclusion, increase transaction speed, and improve systemic resilience. As global financial markets transition toward quantum readiness, the convergence of FinTech and quantum innovation is expected to redefine how digital assets are managed, traded, and secured—marking a paradigm shift toward quantum financial intelligence.
In the modern world, the financial sector faces a wide range of extraordinary events, from market shocks and geopolitical tensions to pandemics and cyberattacks. These diverse challenges significantly impact banks. Recently, particular attention has been drawn to the influence of artificial intelligence (AI) and quantum computing (QC) technologies on the stability of the financial system. This article analyzes the potential areas of impact of quantum technologies on the financial sphere in general and the resilience of financial institutions in particular.It's determined that quantum technologies can simultaneously pose both threats and new opportunities. Specifically, the article analyzes the potential of quantum technologies to break existing cryptographic algorithms that protect the confidential data of financial institutions' clients. This threat is exacerbated by the possibility of "harvest now, decrypt later" attacks, where malicious actors intercept data today with the intention of decrypting it in the future. This presents challenges and threats for online/mobile banking, payment operations, and corporate communications. Among the positive impacts of quantum technologies on banking, the article highlights improved financial risk assessment, particularly enhanced accuracy in stress testing, portfolio management, and derivatives pricing, by solving problems inaccessible to classical computing. The potential of quantum machine learning for fraud detection is also noted. Attention is given to the financial sector's response to these challenges. Initiatives for developing quantum-resistant (post-quantum) cryptography are considered as the primary method for mitigating the risks associated with the proliferation of quantum computing, along with new cryptographic protocols and quantum key distribution as a new opportunity to enhance security. The article emphasizes the responsibility of central banks in forming quantum-readiness strategies, including investments in post-quantum cryptography, expertise development, and the adaptation of regulatory frameworks. The conclusion drawn is that although the immediate benefits of quantum technologies may be modest, their long-term transformative potential for the financial sector is immense.