The Monetary Authority of Singapore has told the country's financial institutions to make sure they are prepared for the rising cybersecurity risks posed by quantum computing.
Experts predict that over the next decade cryptographically relevant quantum computers will start posing cybersecurity risks. These computers will break commonly-used asymmetric cryptography, while symmetric cryptography could require larger key sizes to remain secure.
A recent DTCC white paper warned that quantum computing could "create significant new risks for financial firms by making even the most highly protected computer systems vulnerable to hacking".
In an advisory to FS firms, MAS says this means the sector needs to attain 'cryptoagility' to be able to efficiently migrate away from the vulnerable cryptographic algorithms to post-quantum cryptography without significantly impacting their IT systems and infrastructure.
To help them prepare, the regulator says companies should be monitoring ongoing quantum computing developments; making sure management and third party vendors are up to speed on the subject; and working with vendors to assess IT supply chain risks.
Firms should be maintaining an inventory of cryptographic assets, and identifying critical assets to be prioritised for migration to quantum-resistant encryption, says the MAS.