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Currently we have this turned off.
If I enable a Password Policy in Jira, what will happen to existing users that have a password which does not meet the password complexity requirement.
According to the FAQ here, the policy will go into effect when an individual user changes his/her password. So, users will still be able to login.
You can also run a REST query through Crowd (if Crowd is where you set up your user directories) to force a password change for all your users.