The FCA has pressed the go button on an initiative to see if super powerful quantum computing can be harnessed to cut financial crime.
The new initiative - a world first according to the FCA - will bring together firms, quantum tech providers and national research labs to investigate the practical applications of quantum computing.
Quantum computing is an emerging field in the computer world which uses quantum mechanics to tackle problems beyond the capability of traditional computers. It could super-charge traditional computing power.
The FCA, which announced the move this week, says the move will explore how quantum computing could help tackle financial crime.
The Quantum Experimentation Group, a first of its kind for a regulator, will initially explore how quantum machine learning could help detect money laundering and fraud. It will launch in the first quarter of 2027.
The FCA claims its Quantum Experimentation Group will be the "world’s first regulator-led quantum computing experimentation group."
Using quantum computing in financial regulation could hold out the promise of much earlier detection of financial crime and suspicious transactions.
Participants in the experiment will use an FCA synthetic dataset – artificially generated data – to help overcome one of the key barriers to testing: the difficulty in finding volumes of suitable data.
The group will help firms explore the practical uses of quantum computing in financial services and share findings to guide future testing. It will also help the FCA understand the technology’s opportunities and limitations, barriers to experimentation and what these could mean for regulation.
Jessica Rusu, chief data, information and intelligence officer at the FCA, said: "We want to help firms explore where quantum could make a meaningful difference, and early experimentation is essential to understanding its potential in financial services.
"By bringing together firms, technology providers and researchers we can build readiness and identify practical applications for common industry challenges, starting with financial crime."
The initiative builds on FCA research into the long-term potential of quantum computing in financial services.
Financial services firms, quantum technology providers and national research laboratories are being asked to register their interest in joining the group by 31 December.