The chief of the nation's financial regulator has stressed the need to closely monitor for potential unfair trading of cryptocurrencies, citing the recent surge in prices and the high volatility of the cryptocurrency market.

Appearing on a KBS program on Sunday, Financial Services Commission (FSC) Chairman Kim Byoung-hwan issued the position regarding the trading volume in the cryptocurrency market surpassing that of the stock market.

The FSC chief noted that there are concerns regarding the positive effects of virtual assets on the actual economy, highlighting the necessity of investigating the topic.

As for United States President-elect Donald Trump's pledge to promote Bitcoin and the possibility of South Korea fostering cryptocurrency, Kim said that what matters now is how to connect the cryptocurrency market with the existing financial system and how to protect investors in the process.

Meanwhile, the FSC voiced concerns over the main opposition Democratic Party's move to revise the Commercial Act to expand corporate directors' duty of loyalty to include shareholders, a move aimed at shielding minority shareholders from unfair practices by large companies.

Kim said that he agrees with the idea of transparent corporate governance, but the nation needs to examine the potential negative impacts of the revision on corporate management and the capital market.