South Korea's political parties have begun to actively seek ways to protect cryptocurrency investors as the government is set to impose a 20-percent tax on income from cryptocurrency transactions starting in 2022.

Kim Boo-kyum, the nominee for prime minister, said on Monday that there is a need to thoroughly prepare how the government will handle the issue.

Kim said similar to situations in other countries, he plans to look carefully into the matter as there must not be any victims.

As for an earlier controversial remark by Eun Sung-soo, the Financial Services Commission(FSC) chief, that the government cannot protect investors as cryptocurrencies have "no intrinsic value," Kim said Eun likely felt the need to cool down the market.

The ruling Democratic Party is reportedly seeking to bring the market under state control, with Rep. Lee Kwang-jae suggesting measures to manage the current 24-hour trading and to safeguard young investors.

The main opposition People Power Party plans to set up a task force to look into systemizing the market.