Europol urges crypto industry to start quantum-resistant wallet upgrades now
In brief
- Europol's Oct. 7 report flags the keys that control funds as crypto's main quantum exposure.
- Quantum computers able to break that cryptography don't exist yet, EC3 says.
- Europol advises users to move funds to quantum-resistant wallets once those wallets become available.
- Rolling out new standards across millions of wallets and nodes could take several years, Europol says.
Wallet keys are the weak point
Europol's report identified the cryptographic keys controlling funds as the main point of exposure, according to CryptoSlate. The logic is simple. A sufficiently powerful, fault-tolerant quantum computer could work out a private key from an exposed public key, the agency said, and that would let an attacker forge signatures and spend funds without the owner's permission.
Hash functions come out better. Europol described them as comparatively resilient to quantum attacks (while acknowledging they aren't entirely immune).
Who's expected to do what
This is guidance, not a rulebook. Europol recommended a phased transition to quantum-resistant cryptography, with the work split between blockchain developers on one side and wallet providers and users on the other.
Blockchain projects, it said, should prioritize building post-quantum cryptographic algorithms into their core protocols and support wallet providers in implementing those changes. Wallet providers should begin testing and deploying compatible wallets, then explain the risks and benefits to users. For users, the advice is shorter: migrate funds to quantum-resistant wallets as those wallets become available.
Europol also recommended improving address and key management during the transition. That isn't a fix on its own, though. Moving to a fresh address doesn't by itself make the underlying signature technology resistant to quantum attacks, CryptoSlate noted.
Why it's a multi-year job
The report described rolling out new cryptographic standards across millions of wallets and nodes as a resource-intensive undertaking that would take several years.
It's not only a code problem.
Technical adoption has to be matched by community consensus, which makes organizing the transition a security concern in its own right, per the report. Wallets could need hardware upgrades if existing devices become incompatible with the new arrangements, Europol said. Holdings recorded as unspent transaction outputs (UTXOs) also need transactions registered on the blockchain before they can migrate.
That's why Europol favored a phased approach that puts higher-risk holdings first, giving the ecosystem room to work through compatibility and capacity limits alongside governance constraints. The agency also emphasized clear, understandable communication about risks, timelines and safeguards.
Frequently asked questions
What does Europol see as crypto's main quantum risk?
Europol's Oct. 7 report said the cryptographic keys that control funds are the main point of exposure. It said a powerful enough fault-tolerant quantum computer could work out a private key from an exposed public key, which would let an attacker forge signatures and spend funds without the owner's permission.
Do quantum computers that can break crypto wallets exist today?
No. According to Europol's European Cybercrime Centre (EC3), quantum computers powerful and reliable enough to break the relevant cryptography don't exist yet, and it's uncertain when they'll arrive.
What does Europol recommend crypto users do?
Europol recommends that users move their funds to quantum-resistant wallets as those wallets become available. The report also notes that just moving to a fresh address doesn't make the underlying signature technology resistant to quantum attacks.
Why does Europol say the quantum migration could take years?
The report called rolling out new cryptographic standards across millions of wallets and nodes a resource-intensive job that would take several years. Technical adoption also needs community consensus, devices may need hardware upgrades, and UTXO-based holdings need on-chain transactions to migrate.
